Market Study for Business Service Centre (BSC) supported Women’s Micro and Small Enterprises in Nepal

Submitted to: Business Service Centre

FBPWN/ AIDOS - BSC Project Buddhanagar, Kathmandu, Nepal

21 September 2009

Prepared by: RED Group Pvt. Ltd. Kupondole, Lalitpur

Tel: 5532098 Email: infor@redgroupnepal.com

www.redgroupnepal.com

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Table of contents 1. Executive summary ....................................................................................8 2. Introduction ............................................................................................ 10

2.1. Objective: ........................................................................................................10 2.2. BSC Target Areas ..............................................................................................11 2.3. Activities conducted:..........................................................................................13 2.4. Study sample ...................................................................................................13

2.4.1. Number of samples: 14 2.5. Survey tools .....................................................................................................15 2.6. Study framework ..............................................................................................15 2.7. Study indicators ................................................................................................16

3. Women entrepreneurship .......................................................................... 18 3.1. In Nepalese context...........................................................................................19

3.1.1. Women in wage employment and self-employment: 20 3.1.2. Literacy: 20 3.1.3. Migration: 21 3.1.4. Policy: 21 3.1.5. Socialization: 22 3.1.6. Constraints: 22

4. Study findings with summary and conclusion ............................................... 23 4.1. Focused Group Discussion (FGD) conducted at BSC project areas .............................23

4.1.1. BSC Beneficiaries: 23 4.1.2. Available skills 24 4.1.3. Available agriculture resources 24 4.1.4. Women Daily Routine 25 4.1.5. Division of work (Roles and responsibility) 25 4.1.6. Voice of women 25 4.1.7. Access to resources and control over 26 4.1.8. Women Entrepreneur Barriers 26 4.1.9. Opportunities in BSC working areas 28 4.1.10. Interview findings from existing women entrepreneurs and cooperatives 30 4.1.11. Case: Basla Devi Soap Enterprise – Situation of Enterprise 32 4.1.12. Case: Patriarchal socialization situation leading difficulty in learning new skills – Ms. Krishna

Kumari Maharjan 35 4.2. Product/Service Selection ...................................................................................36

4.2.1. Attractive Matrix Exercise: 37 4.2.2. Ranking Matrix 42 4.2.3. Final selection of potential products/services: 46 4.2.4. Service market opportunities in BSC working areas 48

5. Market Study on Product/Services .............................................................. 51 5.1. Study background .............................................................................................51 5.2. Study goals and objectives .................................................................................51 5.3. Strategy formulation..........................................................................................51 5.4. Seven P’s of Marketing of the selected products/services.........................................53 5.5. Product profile ..................................................................................................56

5.5.1. Product: Candle 56 5.5.2. Product: Tibetean Incense and Religious Incense 58 5.5.3. Product: Rainbow Trout (Oncorhynchus mykiss) 59 5.5.4. Product: Lapsy Products (Choerospondias axillaries) 61 5.5.5. Product: Asparagus (Asparagus Officinalis) 62 5.5.6. Product: Mushroom (White button and Oyster) 63 5.5.7. Product: Fibre based Products - Allo (Girardinia diversifolia) 64 5.5.8. Product: Strawberry (Fragaria ananassa) 66 5.5.9. Product profile: Poultry Farming 67 5.5.10. Product profile: Floriculture – Tata Rose (Rosaceae) 68 5.5.11. Product: Tailoring - Newborn baby clothes 69 5.5.12. Product e: Tibetian Carpet 70

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5.5.13. Product: KIWI (Actinidia chinenesis and Actinidia deliciosa) 72 5.5.14. Product: Ground Apple (Polymnia sonchifolia) 73 5.5.15. Product: Japanese Sweet Potato (Ipomoea batatas) 74 5.5.16. Product: Chest Nuts (Castanea dentate) 75 5.5.17. Product: Chukandar (Beta vulgaris) 77

5.6. Value addition and market parameters .................................................................78 5.7. Service market .................................................................................................83 5.8. Organic Market .................................................................................................85 5.9. Strategic options ...............................................................................................86

6. Cost Benefits analysis of potential products/services ..................................... 92 6.1. Product Name: Asparagus ..................................................................................92 6.2. Product Name: Strawberry .................................................................................93 6.3. Product Name: Tailoring.....................................................................................93 6.4. Product Name: Vegetable ...................................................................................94 6.5. Product Name: Wax candle .................................................................................94 6.6. Product Name: Poultry .......................................................................................95 6.7. Product Name: Mushroom ..................................................................................96 6.8. Product Name: Bulgar Sweet (Lapsi) candy ...........................................................97 6.9. Product Name: Tata Rose ...................................................................................98 6.10. Product Name: Trout Fish ...................................................................................99

7. Possible intervention strategies for BSC supported entrepreneurs.................. 100 8. Major Findings and Recommendations for BSC project................................. 103 9. References ............................................................................................ 105 10. Summary of overall product/market information......................................... 106 11. Annex .................................................................................................. 108

11.1. Institutions Providing Services to Women Enterprises ...........................................108 11.2. Government Agencies ......................................................................................108 11.3. Donor/INGOs Programmes ...............................................................................110 11.4. NGO..............................................................................................................110 11.5. Financial service providers ................................................................................113 11.6. FGD procedure for BSC market study .................................................................118 11.7. Interview Questionnaire for Entrepreneur (Start-up and Growth)............................122 11.8. Questionnaire for Cooperative ...........................................................................127 11.9. Questionnaire and Checklist for Market Study......................................................130 11.10. Field visit schedule of the assignment.................................................................133 11.11. List of people met ...........................................................................................134 11.12. Promoters profile.............................................................................................136 11.13. List of organisations visited for collecting secondary source of information ...............137 11.14. Fair Trade ......................................................................................................138 11.15. Additional reference materials produced during the study......................................142

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List of Tables Table 1: BSC working District, VDC, Households and Population ............................... 11 Table 2: FGD list................................................................................................ 14 Table 3: Characteristics and traits essential for entrepreneurship recognised by experts....................................................................................................................... 19 Table 4: Foreign Employment statistic................................................................... 21 Table 5: Listing of opportunities available in two major clusters ................................ 29 Table 6: List of cooperatives and groups working in BSC target areas ........................ 32 Table 7: Listing of selected products/services from the attractiveness matrix.............. 42 Table 8: Final potential products/services as per each cluster:.................................. 47 Table 9: Final selection of potential products/services as per each VDC: .................... 47 Table 10: 7 Ps explained ..................................................................................... 53 Table 11: Analysis of products in 7 Ps ................................................................... 54 Table 12: Product parameters.............................................................................. 79 Table 13: Quality requirements for partership ........................................................ 80 Table 14: Value addition of products..................................................................... 81 Table 15: Strategic choice and relevant products.................................................... 86 Table 16: suitable location proposed for selected products ....................................... 89 Table 17: List of fair trade Organisations ............................................................. 140

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Acknowledgements RED Group would like thank the Business Service Centre project for entrusting us to conduct the overall market study on potential women supported micro enterprises in the target areas. We would also like to thank specially, the following individuals and organization’s representatives by giving their valuable time and support during the study period. We also like to thank:

the entire study team from both the RED Group and the BSC staffs especially in data collection from the field and the market traders

individual women beneficiaries and male family members of the beneficiaries those participated in the Focused Group Discussion and one to one interview

cooperatives for their cooperation in sharing existing constraints and its possible solutions

individual entrepreneurs in the target VDCs involved in various sectors for providing product information and entrepreneurial feedbacks

local level NGOs and market traders in the selected products/services in sharing their valuable insights to upgrade existing products and other value addition aspects

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ACRONYMS AND ABBREVIATIONS BSC : Business Service Centre VDC : Village Development Committee MA&D : Market Assessment and Development SWOT : Strength, Weakness, Opportunities and Threats MT : Metric Tons ICIMOD : International Centre for Integrated Mountain Development AEC : Agro Enterprise Centre / FNCCI FNCCI : Federation of Nepalese Chamber of Commerce and Industries OVOP : One Village One Product JAITI : Japan Agriculture In-Service Technical Institute FGD : Focused Group Discussion IG : Income Generation

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Study team: RED Group Team leader/Enterprise Development Consultant Mr. Sichan Shrestha Market Linkages and Enterprise Promotion Consultant Mr. Suhrid Chapagain Researcher Associate (Marketing) Mr. Nirmal Chapagain Researcher Associate (Enterprise Development) Mr. Hem Tembe Researcher Associate (Gender Specialist) Ms. Sita Gurung BSC Marketing Officer Mr. Yubak Raj Ghimire Local promoter Mr. Rishi Raj Koirala Local promoter Ms. Bimala Shrestha

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1. EXECUTIVE SUMMARY BSC project started with an aim to support women initiated micro and small enterprises in Nepal for four years in the selected working VDCs (Kakani, Okharpauwa, Chapali Bhadrakali, Sirutar, Thecho, Sainbu and Kirtipur municipality) covering four districts (Kathmandu, Lalitpur, Bhaktapur and Nuwakot). BSC has hired RED Group Pvt. Ltd., consulting company to undertake the assignment for assessment of existing situation of BSC beneficiaries together with the market study from the month of April until June 2009. After complete preparation of the study design in terms of work-plan, questionnaire and detailed guidelines, the study team successfully conducted 10 FGDs with the target women beneficiaries and 24 questionnaire forms were filled from the individual entrepreneurs at different stages of their business working on different products and services. Similarly, the market research was conducted with the selected potential products and services identified during the FGDs conducted in the field. Traders were identified working in the selected products and services and again from them, few were further selected those who are interested to work with the BSC beneficiaries as a ‘market promoter’. From the FGDs and interviews conducted, following findings are summarised as follows:

Over all, the BSC target beneficiaries are at the early stage of business. However, few beneficiaries are successfully operating business with the desired turnover. It is also observed that mostly women beneficiaries are operating their business by close observation and supported by their husband or male family members.

Women beneficiaries have basic technical skills predominantly in agriculture and in other off-farm based enterprises. However, their skills are traditional and need to update with the modern ones.

Modern service market in the target VDCs located in remote areas i.e. Sirutar, Kakani and Okharpauwa is weak due to low purchasing capacity. There are few services i.e. Tailoring, Retail Shops, etc., which are viable if the required quality is maintained as compared to the urban market.

Availability of resources is limited except land, which is also slowly being occupied by the housing company. However, in Okharpauwa and Kakani area there are wider scope for agriculture base farming due to fertile land and suitable climatic conditions for all types of products i.e. vegetable, floriculture, high value cash crops etc.

Mostly beneficiaries allocate time in the day from 11 AM onwards until 3 PM for working in the agriculture field or in selected enterprise so this time is also suitable for attending training and other social networking.

There are many barriers within the beneficiaries at present that is hindering them to become as a successful entrepreneur. One of the major barriers are not been able to give sufficient time in the business due to many roles she had to play at home, limited knowledge on the modern technology and managerial skills. Mostly beneficiaries are involved income generation activities and not really doing commercial business.

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In the working areas, there are opportunities that need to be explored in terms of natural resources in Okharpauwa and Kakani areas, indigenous traditional skills available in the surrounding areas from Thecho, Sirutar, Sainbu, and Kirtipur.

Women beneficiaries can easily access minimum amount of loan from the credit and saving group from her affiliated group and from micro-finance institutions, but if she requires a big amount of loan to expand her business or to purchase, any equipment then she had to depend with other big commercial bank or finance company.

Final potential products are selected based on the interaction with the target beneficiaries during the FGD conducted in all target areas. After feeding inputs in the ‘attractiveness matrix’ and the ‘ranking exercise’ within the given criteria (In attractive matrix: potential to increase income and potential number of beneficiaries and in ranking exercise: availability of local resources, skill, availability of technology, and market potential), final selection was done. Final selected 14 products and services are Asparagus, Traditional Incense Stick (Agarbatti), Candle, Floriculture, Hotels & Restaurants, Burglar Sweet (Lapsi), Mushrooms, Nepali Tibetan carpet, Poultry, Retail shops, Sculpture, Season & off-season vegetables, Strawberry and Trout Fish. These selected products and services are recommended as per the BSC cluster for future project interventions (refer product selection process in the section 4.2). Detailed market survey was carried out within the selected products by exploring market traders and further selected few traders in each product as a promoters those who are interested to work with the BSC target beneficiaries. These selected traders as market promoters will buyback guarantee the products from the promoters and interested to support them in provided embedded services. Product profile (refer section 5.5) is prepared as per the discussions with the market promoters and other secondary sources of information. After the market findings, five strategic choices (refer section 5.9) are formulated as a future direction for BSC project interventions. Five strategic directions are as follows:

1. Increasing in production capacity & introduction of improved varieties of products, 2. Strengthen processing technology 3. Introduction of cooperative and group business approach 4. Partnership for product development 5. Strengthen women entrepreneurs by linking them with the service providers and

promoters Cost benefit analysis of 14 selected products are prepared (refer section 6) with the costing details at the production level and sales price to calculate the profit margin to the producers of each product. For BSC project to support beneficiaries in their business promotion, partnership with the market promoters in the selected products and services is necessary. BSC should facilitate in building the long-term relationship between the beneficiaries and the market promoter by understanding both their needs and supporting them in terms of technology, skills, management and marketing of the products and services.

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2. INTRODUCTION The Federation of Business and Professional Women of Nepal (FBPWN) with the technical assistance of the Italian Association for Women in Development (AIDOS) has started the implementation of the Project “Establishing a Business Service Centre (BSC) for Women’s Micro and Small Enterprises in Nepal”. The four-year project, launched in February 2008 is co-financed by the European Union (EU). The Project aims to enhance women’s active role in the labour market through the upgrading of existing micro enterprises run by women into more viable, self-sustainable and growth -oriented businesses and through the creation of new ones. By doing so, the Project intends to contribute to mitigate the poverty affecting Nepalese families by enhancing women’s capacity to organize their labour in an economically feasible way. The Project strategy focuses on strengthening FBPWN’s capacity to manage enterprise development programmes through the creation of a Business Service Centre (BSC) for women’s Micro and Small Enterprises (MSEs). The BSC acts as a counselling / training / business development centre to support women’s led subsistence income generating activities to become more viable, and profitable. The BSC is managed by a technical team including a Director, a Training Coordinator, a Marketing Officer, a Business Counsellor/Credit Officer, and two Local Promoters. The BSC Team is trained by AIDOS outsourced international experts in the field of enterprise development, promotion, marketing and communication and it is supported on-the-job by the International Project Manager (AIDOS) and the National Project Manager (FBPWN) support it on-the job. The BSC provide existing and potential women’s MSEs in the Project target areas with an integrated package of business development services (BDS) including: entrepreneurship orientation, business management training, technical skills training, product design and development (PD&D), facilitation to access micro and small credits, follow-up and business counselling, marketing assistance, and business networking. The BSC will also offer, on a contractual basis, technical assistance and capacity building services for organisations involved in local socio-economic development. The BSC is established as a donor–funded development cooperation Project. However, the Project will work to define, in coordination with FBPWN, an appropriate sustainability strategy to establish the BSC as a permanent centre of excellence for the promotion of women’s entrepreneurship in Nepal.

2.1. Objective:

The overall objective of the study is to conduct market study and assessment of BSC beneficiaries for designing strategies for providing services to the BSC supported women beneficiaries. Other specific objectives are as follows:

1. Assessment of BSC beneficiaries to understand their current status and explore future possibilities they can adopt.

2. Study market at district and local level of the selected products/services. 3. To develop strategies with reference to the few selected potential

products/services as an input so that BSC could design service package suitable for all level of enterprises from sustenance towards growth-oriented enterprises.

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4. Explore opportunities to increase competitiveness of products/services by improving quality, packaging and value addition aspects.

5. Identification of potential market promoters (well established traders) who are already working in the selected products and are ready to work in the BSC program areas for long term business promotion and explore other value addition aspects i.e. organic and fair-trade.

2.2. BSC Target Areas

The study areas are once again divided into three clusters according to the natural resources and human skills. The BSC operates from FBPWN premises in Buddhanagar, Kathmandu, and it extends its services to the following areas: Kathmandu District (in Kirtipur Municipality , and Chapali Bhadrakali VDC); Bhaktapur District (in Sirutar VDC); Lalitpur District (in Sainbu and Thecho VDCs); and Nuwakot District (in Okharpauwa and Kakani VDCs). The Project targets disadvantaged, poor women (between the age group 18-50 years) who are residents in the target areas. Preference will be given to female heads of household and family breadwinners and those already involved in business activities or intended to start an entrepreneurial activity. Three clusters VDCs:

A. Sirutar, Sainbu and Chapali Bhadrakali B. Thecho and Kirtipur Municipality C. Okharpauwa and Kakani

District VDC/Municipality

Kathmandu Kirtipur Municipality, Chapali Bhadrakali Lalitpur Sainbu and Thecho Nuwakot Okharpauwa and Kakani Bhaktapur Sirutar

Table 1: BSC working District, VDC, Households and Population

District VDC Households Population Male Female Kathmandu Chapali Bhadrakali 903 4544 2278 2266 Bhaktapur Sirutar 830 4532 2273 2259

Kathmandu Kirtipur Municipality 9487 40835 21686 19149 Lalitpur Sainbu 1789 8337 4243 4094

Lalitpur Thecho 1550 8020 4021 3999 Nuwakot Okharpauwa 1274 7277 3700 3577 Nuwakot Kakani 1396 7604 3761 3843

Source: Census survey 2001

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The BSC project locations are visually sketched as a layout map including all seven VDCs to plan in terms of sample design and other field level planning details. Three clusters are separated with different colours and these clusters VDC represent similar characteristics based on resources and skills. After we had gathered sufficient information from these each clusters, products / services were selected in these each cluster for further detailed analysis. BSC project is implemented in seven VDCs covering three districts of Nepal. Brief description of BSC project VDCS are as follows:

1. Sainbu: VDC is located very near to the Kathmandu valley in Patan district within near to the Nakhu River, Khokana, and Bagmati River in the East. Seventy per cent of the populations are involved in the agriculture sector.

2. Thecho: VDC having population of 8,020 is located near to the popular market Mangalbazaar in Lalitpur district with major inhabited by Newar community and also Brahmin and Chhetri community are also exist. There are 10 schools, 1 health post and 1 Red Cross Society.

Kathmandu

Chapali Bhadrakali

Sirutar

Thecho

Kirtipur Municipality

Sainbu

Okharpauwa Budanilkantha

Balkot

Road

VDC/Municipality

BSC Targeted VDCs

Kakani

5 Km25 Km

3Km

5 Km

Maharajgung Chowk

Towards Bhaktapur

Khokana

Ring Road

Ring Road

Legend

2 #

1 #

1 #

1 #

1 #

1 #

Figure 1: BSC working VDCs

Cluster A

Cluster B

Cluster C

1 #

1 #

Male Group

Female Group

1 #

Three clusters: A: Sirutar, Sainbe and Chapali Bhadrakali B: Thecho and Municipality Kirtipur C: Okharpauwa and Kakani

2 Km

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3. Kirtipur: Kirtipur has long traditional history and rich in cultural and heritage sites. Seven kilometres south of Kathmandu with population of 75,000 and household size of 7,875. Mostly households are engaged in agriculture sector and few in wage labour.

4. Chapali: VDC is located 8 km from the north of Kathmandu valley and very near to the popular temple Budhanilkanth and Shivapuri National Park. Area is having population of 4,640 with household size of 921.

5. Kakani and Okharpauwa: Kakani and Okharpauwa VDC are having a population of 7,604 and 7,277 respectively with a majority of Tamang community located 25 km far from the Kathmandu valley. Areas are connected with major market centres Rani-Pauwa, Jurethum and Kakani. Areas are now popular for a picnic spots as well as major production of Trout fish and Strawberry.

2.3. Activities conducted:

Following specific activities were carried out by the research study team in partnership with the BSC team starting from the month of April until June.

1. Consultative meeting with project team to understand the scope of work and the expected results in more details

2. Literature review of existing documents available at BSC office and as specified in the TOR1 and other available document related to the BSC project.

3. Preparation of questionnaire/checklist and study guideline and pre-test with few women entrepreneur. Other necessary formats prepared for the field survey

4. Field survey planning: Detail planning of schedule, agenda, timings, etc. 5. Conduction of FGD with the women’s groups in collaboration with local promoters

where members of the group are at early start-up and already in the growth phase

6. Direct interviews with the individual women entrepreneurs representing all types of enterprises

7. Selection of few sub sectors that is feasible for the given three clusters 8. Observation visit at the major market centre at all levels (Central District and

Local) 9. Interviews with the market traders (Wholesalers and Retailers) and Cooperatives

2.4. Study sample

Sample size was estimated based on the tentative BSC beneficiaries and the study timeframe.

1. Focus Group Discussion (FGD) with 7 Women Groups and 3 Male Groups representing husband’s of women entrepreneurs

2. Interview with 5 Cooperatives, 14 women entrepreneurs and 5 key informants from other related programme & Government officials.

1 1) the Market Study undertaken by the BSC Marketing Officer; 2) the village profiles by the BSC local promoters; and 3) general assessment of the BSC beneficiaries and the Project target areas by the local promoters.

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3. Market assessment with 5 wholesalers and 10 retailers representing selected products / services

4. All together total of 50 samples will be surveyed through FGDs and interviews

Table 2: FGD list

VDC/District Women Group Male Group Nuwakot 2 1 Kirtipur 1 Sainbu 1 1 Thecho 1 Sirutar 1

1

Chapali Bhadrakali

1

Total 7 3

2.4.1. Number of samples:

The above figure represents study samples in tree structure with number of samples in the bracket. Box represents sample to be collected from various sources i.e. FGD, Interviews and Market assessment. Similarly, in the second layer samples representing from various sources are specified from which target groups i.e. women, male, cooperatives, entrepreneurs, stakeholders, wholesalers, retailers, etc. Further it is also specified going into very categorically about the types of the enterprises i.e. at the growth stage, start-up, saving & credit, marketing service providers, organic and Fair Trade, etc.

(49)

FGD (10)

Interviews(24)

Market Assessment

(15)

WomenGroup

(7)

Growth(4)

Startup(3)

Entrepreneur14)

Cooperative(5)

Saving & Credit

Wholesale(5)

TraderGrowth(7)

Startup(7)

Retail(10)

Retail

Supermarket

130

Stakeholder(5)

MaleGroup

(3)

Representative of

Husbands

Note: Number in brackets represents the number of sample to be surveyed

MarketingService Provider

SAMPLE DESIGN

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2.5. Survey tools

Following tools were used for gathering information from the BSC beneficiaries, market traders and promoters.

Questionnaire / checklist / guidelines FGD in the women groups Direct interview with the individual women Interview with the traders (wholesaler / retailer) Observations visit at market centre Success and failure cases from the study VDC Collection of photographs Conceptual analytical tools : Sub sector / Value chain analysis , Market

Assessment and Development (MA&D) , and SWOT

2.6. Study framework

The study framework was designed in three stages as shown below: 1. assessment of existing situation, 2. product identification and exploring market potentials, 3. formulation of strategies for BSC program interventions.

Assessment of existing situation: After reviewing available BSC literature to understand existing situation of the BSC targeted VDCs, information was gathered with the help of FGD and interviews with the women groups/cooperatives. Information is analyzed with their constraints in collaboration with BSC local promoters. Selections of final products/services to each clusters and explore market potentials: To select final products / services, criteria were developed together with the BSC team followed by ranking exercise. Basically products/services are selected from the major three sectors: 1. agriculture, 2. off farm, 3. high value crops, other sub sectors

Assessment of existing situation

Product Identification and Explore Market Potential

Formulation of strategies for BSC program intervention

Identify target group/cooperatives in all VDC

List resources and Products/ Services

Gender specific constraints

Identify key market constraints

Ranking of products for final selection

Upgrading strategies Action plan Financing Monitoring indicators

Final selection of few potential products / services

Gather market information from the traders

Figure 2: Study framework

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such as Handicraft, Organic vegetable farming, Food and fruit products, Recycle products, Traditional skill based enterprise and Cottage and textile enterprise are also taken into considerations. After final selection of products/services, market potentials will be explored with the research team by visiting market centres and the traders. Formulation of upgrading strategies BSC project interventions: upgrading strategies will be outlined with reference to the potential products/services selected to the BSC project for future interventions. Cost implications for future BSC interventions will be projected with the action plan.

2.7. Study indicators

The study indicators from target beneficiaries, women group, cooperatives, service providers and market traders were designed before designing questionnaire form for data collection. These indicators were used in the questionnaire form as shown in the table below.

Women beneficiaries Women Group Cooperative BDS provider Market Traders - Technical skill - Attitudinal Behaviour

competency - Managerial competency - Family support - Financial support - Cost Benefits - Constraints &

Opportunities

- Group dynamics: decision making, roles & responsibility, new investment

- Existing capacity - Trend - Expectations

- Identification of providers and their services

- Procedure of getting services by the beneficiaries

- Design - Price - Quality - Volume - Availability - Packaging - Delivery mechanism - Embedded services - Contracts

Indicators for assessment of beneficiaries:

Entrepreneur education Entrepreneur social & legal barriers, socialization pattern, social cultural norms

and support Entrepreneur traits Enterprise registration procedure and type with level of investment Training received Quantity / Volume in Metric Ton Existing standards/Specification followed Basic ingredients Quality Pricing Productivity per Square Metre /Day in months Raw inputs in Qty/No. and source/location No. of labour : Skilled/Unskilled/Semiskilled Machinery inputs and its cost Building: own/rented Processing by Hygienic and Health considerations Access to loan: Source and min and max amount Working Capital practices

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Investment capital: Minimum and Maximum Raw materials resource inventory Marketing problems

Indicators for market assessment:

Market price Packaging design available Product availability in the types of outlet Target consumer profile Promotional tools used Access of transport facility from the production site Other varieties available Pricing and trend Delivery time Product specification and Sizes Major manufactures: prepare list with contact details, possibilities of further

trading Major turnover Product shortage time Annual consumption Satisfaction/dissatisfaction with the present products No of traders involved and segmentation Profit margin Means of payment Payback guarantee Sourcing Quality Annual Quantity Demand in Season Contract document Embedded Services Social Responsive

Refer annex for detail questionnaire form used with the above indicators.

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3. WOMEN ENTREPRENEURSHIP Entrepreneurship can be described as a creative and innovative response to the environment. Such responses can takes place in any sector. Doing new thing or doing things that are already being done in new ways is, therefore, a simple definition of entrepreneurship. A person involved in any business activity where the person sells a product/service and makes profit is an entrepreneur. Based on years of experiences and research, it has identified specific skills and competencies in any successful entrepreneur. Therefore, it is recommended that for developing women as entrepreneur should have the following basic three ingredients. All three components are taken into considerations in the study design. 1. Skills: For a woman to initiate her entrepreneurial career and run it successfully, it is necessary to acquire the following skills.

Environment scanning Risk and Feasibility assessment, Analytical Project planning Business forecasting and planning Communication Interpersonal Managerial and decision making

2. Knowledge and information: To start and run the business successfully, the following knowledge and information are necessary.

Entrepreneurial role Process of becoming an entrepreneur Opportunities available Resource available Procedural and legal information Problems of enterprise Contents of business plan

Figure 3: Three components of entrepreneurship

Knowledge & information

Attitude and

Traits (Competencies)

Skills

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3. Attitude and Traits: A woman, intending to take up the role of entrepreneur, needs to acquire and strengthen requisite attitudes and entrepreneurial traits. The requisite competencies to be acquired and/or strengthened can be described as under:

initiative persistence information seeking problem solving risk taking systematic planning concern for high quality innovation efficiency

Table 3: Characteristics and traits essential for entrepreneurship recognised by experts

Characteristics Traits

Self confidence Confidence Independence Optimism Individuality

Task resulted oriented

Need for achievement Profit oriented Persistence Perseverance Determination Hard work, drive, energy Initiative

Risk taker Risk taking ability Likes challenge

Leadership Leadership behaviour Flexible (openness of mind) Resourceful Knowledgeable Versatile

Source: workshop on Entrepreneurship, Honolulu, 1977

3.1. In Nepalese context

Women entrepreneurship in Nepal is a relative new phenomenon. However, certain ethnic communities in the country, especially the Newars and Tibetan from highlands such as Sherpa’s, Gurung’s, and Thakalis women are known to have been involved in small business (CEDA, 1981) for a long time. From few decades, the concept of women entrepreneurship has progressively gained with the growing recognition that women have unique talents, which could be harnessed for development, and more employment opportunities created and become part of national development planning and strategies. Gender equality and economic development go hand in hand. Since the early 1980s, the policy makers and planners have become acutely aware of the economic significance of women’s productive activities and the nature of their contribution to income generation. It has been firmly established that women in Nepal are vital and productive contributors

Entrepreneurship has been defied as: “Someone who innovates, and whose function is to carry out new combinations called enterprises” (Schumpeter, 1934)

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to the national economy but their access to knowledge, skills, resources, opportunities and power still remain rather low (Shtrii Shakti, 1995). A large part of women's work is not considered as economic activity, although women work for more hours than men work and take the major responsibility for maintaining the family. Available data (UNDP, 2004) indicate that women face higher levels of unemployment and underemployment in both rural and urban areas. Most women workers-over 70 percent- are confined to self-employed, unpaid and low wage informal sector serviced with their contribution - although extremely significant-often underreported and unrecognized. Over the past women’s participation in economic activities has also move beyond agriculture into the local market economy. In search of wage employment, women are moving into small business and self-employment ventures thereby creating many formal and informal opportunities for work. Women are increasing migrating to urban areas for employment in a range of cottage industries, such as carpet weaving, textiles and handicrafts.

3.1.1. Women in wage employment and self-employment: In accordance with the socio-economic condition and the phase of development, women involvement differs in comparison to the male workers. As our society is still dominated by feudal socio-economic relations, the proportion of women in paid work is less, whereas that of women as unpaid family workers is very high. On the other hand, the number of self-employed women workers also seems low in comparison to males. It is because of the fact that activities of males are counted and those of females are hardly counted to that extent. Therefore, merely around 8 per cent of the female labour force is in paid employment and 29 per cent as self employed, but a high majority of altogether higher than 63 per cent of the total female labour force are working under the status of unpaid family workers including of course as the attached labour to their male members of the family working on wage elsewhere.

3.1.2. Literacy: Although Nepal's literacy rate has increased in recent years, the percentage of literate women lags behind the percentage of literate men. The male literacy is 81 per cent while the female literacy rate is only 54.5 percent (NDHS, 2006). Social prejudices against female education, restriction on mobility the low social status of women, the system of early marriage and low participation of female in the formal employment sector too results in lower literacy for females. Although there have been some quantitative improvements in terms of the number of girls enrolled in school and number of women receiving training, these efforts have not delivered any significant progress in terms of uplifting the overall status of women. The lack of qualified and trained female professionals at various levels in various sectors is the significant problem in Nepal. Women's literacy programmes have been widely implemented. However, the relationship between literacy programmes and the realistic conditions of women in Nepal has not been carefully analysed or addressed.

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3.1.3. Migration: During the past ten – twelve years due to conflict and underground economy, there has been reduction in large number of job market in all sectors. Twelve years statistics figure shows that, all together 7,12,137 numbers of labours had already gone to work outside Nepal. The statistical figure does not shows a true picture as most of the same labours are respectively visiting many countries when their contract got expires. Looking at the current trend, it is estimated by linear projection for five years. The details show from the trend line that, more than 2,00,000 Nepalese will be visiting other countries every year. An average of 600 persons left the country for employment purpose daily in the fiscal year 2005/06, reveals the annual report of Department of Labour and Employment Promotion (DoLEP).

Table 4: Foreign Employment statistic

SN Name of the Country

Year 2062/63

Total from years 2051 to 2063

1 Saudi Arabia 10844 142534

2 Qatar 39397 187991

3 U. A. E 10824 74632

4 Bahrain 329 5460

5 Kuwait 471 9334

7 Hong Kong 97 3609

11 Malaysia 60541 281047

17 Korea 127 5609

19 Israel 592 1921

Total 123,222 712,137

Source: Foreign employment statistic, 2007

The vicious circle of backwardness and poverty can be eliminated by transforming the agrarian economy into a dynamic one through industrialisation. The contribution of industry to national income in Nepal is about 6 % of GDP, besides organised industries in the country there is a large number of micro enterprises operating on a small cottage basis, which contributes about 4 % of GDP.

3.1.4. Policy: The major industrial strategies employed in Nepal are both import substitution and export promotion. In these circumstances, one major way to achieve the goal of industrial development could be through establishment of small-scale enterprises. For this to happen, it is recognized that entrepreneurship development can be the key to raising the prospects for increasing the share of small-scale and cottage industries in the national income (Aryal, 1992). It is against this backdrop of industrial development and women’s role and participation in the national economy that one must critically view the emerging needs of and scope for women in quite recent. While Nepal has been interested in the development of small-scale and micro enterprises since the late 70’s, issues and questions relating to the promotion of women entrepreneurs have been raised more recently (UNIDO, 1988). The number of women who come under the category of entrepreneurs in a formal sense is still negligible. The representation is somewhat better in the informal sector with a

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higher percentage of women applying for loans for cottage industry enterprises. However, this does not necessarily mean that these women intend to enter the economy as entrepreneurs.

3.1.5. Socialization: The entire socialization pattern is the Nepalese society is such that the young boys are prepared for the world of productivity work and decision-making, whole girls are trained to be effective housewives, mothers and providing services to their families. Self-denial, putting others before oneself, self-effacement, gentleness, sacrifice, soft spoken and other feminine qualities is encouraged in her upbringing. Decision making, strength of expression, articulateness, opinion formation, thinking of one’s needs and interests future career planning , etc., are not qualities which are promoted to develop her in her socialization process. Furthermore, she is for the most part confined to an inside world, and not permitted to interact with the outside world of information, knowledge and accessing various resources. There has not been done enough work in the entrepreneurial research arena in Nepal, the topic of women entrepreneurs virtually remains suspense, with the exception of a few studies carried out by development organisations and interventions from few NGOs, and INGOs working in the sector is quite not enough. Degree of awareness has already been raised, particularly among the urban elite about entrepreneurial ventures, challenges and scope in small and cottage industries in Nepal but the other parts of the rural women are in the dark side with lack of knowledge and education.

3.1.6. Constraints: Women entrepreneurs cited problems as weak in self-confidence, persuasion and assertiveness. It was also found that the family also lacks confidence in women’s capability, whether it is related to their mobility outside home or to mortgage as collateral to obtain loans from banks. Lack of confidence and the negative social perception towards women have had a disabling impact on building up women’s confidence (Ranabhat, 1995) Nepalese society (with the exception of certain ethnic communities of the Tibeto-Burman group) is predominantly, patriarchal that is male dominated. Women working outside household work tend to be viewed as degrading to the family status. Working women have to bear with a double work burden both housewife or a mother and outside work for income generation. Women are viewed as weak, passive, obedient or submissive. Further, dominant religious beliefs and traditions do not favour women being involved in outside works. In some cases society considers its man weakness if his wife works outside. In business, women have to deal with many people and sometimes have to travel away from homes. Such things are not accepted by society as such and therefore constitute major problems for women entrepreneurs. Irregularity, non-availability and poor quality of raw materials have been reported as major constraints for women entrepreneurs.

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4. STUDY FINDINGS WITH SUMMARY AND CONCLUSION The study findings are divided into three major milestones of activities carried out during the study process. Each activities conducted are elaborated more with the analysis and the findings. Three milestones of activities carried out were as follows:

Product selection and understanding of entrepreneurial dynamics from interaction and FGDs conducted with the women beneficiaries (representation from groups, cooperatives and other individuals) and male groups (any male members from the women beneficiary households).

Market research from interaction with the traders Opinions received from the experts those working in the promotion of women

entrepreneurship sector

4.1. Focused Group Discussion (FGD) conducted at BSC project areas

BSC team (local promoters and marketing officer) along with the research team interacted with the BSC target beneficiaries in all project VDCs. BSC promoters gathered target beneficiaries at the discussion place with the help of each local key person appointed by BSC as an ambassador2 in each VDC. Separate three more FGDs were conducted with the male groups. Refer annex (FGD procedure for BSC market study) for guidelines followed for facilitating the FGD process and annex (List of people met) for more detailed list.

4.1.1. BSC Beneficiaries: BSC beneficiaries are disadvantage poor women aged 18 to 50 years, resident in the target areas, preferably heads of the households and breadwinner, with at least functionally literate who is already running IG activities and willing to turn into growth enterprise. During the FGDs conducted, it has been observed that the beneficiaries are mostly at the primitive stage in their business start-ups and very few individuals’

2 For regular communication with the beneficiary women BSC has appointed one key person as a ‘ambassador’

Photo 1: Focused Group Discussion conducted with Male Group (left) at Sanibu VDC and Women Beneficiaries (right) at Thecho VDC

Photo 2: Beneficiaries at Kanakni

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women are successfully operating their business. It was also observed that the target women beneficiaries are operating business mostly in close collaboration with other male family members. BSC beneficiaries in Thecho area is mainly dominated by Newar community, Kirtipur is mainly dominated also by Newar (85%) followed by Chhetri and Dalit, in Chapali VDC majority are Chhetri community (85%) followed by Newar, in Sainbu Chhetri and Magar ratio is 80:20, in Sirutar 60% is Newar & Brahmin and 40% Chhetri, in Nuwakot (Okharpauwa & Kakani) Tamang community people dominates.

4.1.2. Available skills All sorts of technical skills have been observed by the research team with the women entrepreneurs in different sectors predominately-in agriculture and in other off-farm base enterprises related to products and services (refer annex for more details) but their level of knowledge is at the very basic level. Women entrepreneurs observed lack necessary managerial skills. It has been observed that the women do not have basic required skills due to their Patriarchal socialization. Some of the root causes of the marketing problems of women entrepreneurs are limited knowledge of markets, lack of skills, experience and self-confidence, and inadequate entrepreneurial and managerial competency. In the target areas service market consumers at the local level is very weak and only limited in few sectors i.e. tailoring, shops, hotels etc. where as other few potential services i.e. beauty parlour, embroidery etc. that women can operate are not viable due to the low spending capacity of the local community people. Those potential services can be viable only if the services can be delivered to the urban market centres by taking orders from the urban traders in a bulk and women are involved either individually or in a group. However, few service market opportunities are analysed based on the existing available infrastructure.

4.1.3. Available agriculture resources Mostly in project VDCs almost all beneficiaries are to some level dependent on agriculture sector having minimum of 508 Square Metres land area. However, in the VDCs (Thecho, Sainbu, Sirutar, and Chapali) located near Kathmandu areas are slowly being occupied by housing company and other brokers involved in selling lands. Eventually these areas will not be left out with any land for commercial agriculture farming. In some areas like Okharpauwa and Kakani are very much fertile and have suitable climate for agriculture farming in high value commodities and livestock.

Resources (natural and local technology) available at BSC project areas

1. Sirutar: Bamboo, Land, Mill for Paddy and Maize, Straw

2. Sainbu: Compost Fertilizer, Land, Mill for Paddy and Maize, Straw, Water

3. Chapali: Compost Fertilizer, Forage, Forest, Lapsi, Mill for paddy and maize, Pine leaf (Sallebir), Straw, Water

4. Thecho: Yarn, Irrigation and Pond, Land, Bitten Rice preparing Machine, Straw, Water

5. Kirtipur: Compost Fertilizer, Forest, Mill for Paddy & Maize, Water

6. Okharpauwa: Allo, Raw materials for Bio Briquitte, Firewood, Forage, Forest, Land, Mill for Paddy & Maize, Water

7. Kakani: Allo, Bamboo, Banmara - Briquitte, Compost Fertilizer, Forest, Land, Bamboo (Nigalo), Timber

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4.1.4. Women Daily Routine Women start her daily routine work after cleaning and sweeping house. Normally in Newari culture and in few others, all households’ works are carried out by daughter in law. She then prepares tea and food for the family members. She prepares children for school and husband for work. She is now free from indoor household’s work and goes to the agriculture land to work in cultivated crops and those having livestock are engaged in feeding forage and other cleaning works. During the daytime households having agriculture land still continue to work in the field and other women are busy working in income generation or micro enterprise that she owned. She has to take responsibility of her children by bringing back from school and giving them food. In Okharpauwa and Kakani, women gets time to work in the morning (7 am to 11 am) and evening (3 pm to 6 pm) where as during the day, due to heat, they take rest. In the evening, they are busy in calculation of whole day business transaction and other planning and preparation for the next day. She then prepares dinner for family members. She hardly finds time to watch television program before going to bed. Suitable time for women beneficiaries are from 11 am to 3 pm to learn, work and other social networking activities i.e., attending women group meetings.

4.1.5. Division of work (Roles and responsibility) Women constitute about 50 percent of the population of Nepal. However, only 30% women are literate in comparison to 65% man and out of total school enrolment, only 38% are girls. Indeed, religion and tradition play significant role in the determination of women’s status in household and society. The general condition of the Nepali women in terms of work division, women are overloaded. In most of the society (even today), daughters are considered as the temporary member of the family who leave their parents after marriage. In Nepalese society, female member of a household have been playing a vital role in most of the domestic affairs particularly related with physical activities. Commonly, it is observed that the female member of a household involves in child care, worshiping, washing dishes, cleaning, cooking, feeding to other household members, drinking water fetching, firewood collection, feeding to animals (management of grass and other), kitchen gardening and agricultural labour. Nevertheless, awareness of women and men has been increasing gradually in regard of work division. It is true that lives of men and women are intrinsically linked. Therefore, it is essential to share role and responsibilities equally between men and women.

4.1.6. Voice of women Traditional practices, norms and values have been followed by most of the Nepalese society where women are dominated and normally they are restricted to take decision themselves without consulting male. The interim constitution of Nepal ensures 33 percent women representation among the elected members at the elected bodies. However, their representation in key decision making political positions and in the civil service is still very low. Efforts have been given to change the situation from various side, but long way to go. In many cases, women hesitate to speak in front of male and

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try to escape as possible. However, gender sensitisation/orientation activities launched by different development actors have been played a significant role in the society. As a result, slowly, women are being capable to put their voices in the forums and developed positive attitude of the male towards female. Besides, it has contributed importantly in the promotion of women participation in development activities. The example of consequence is establishment of women cooperative in different villages (through collective voice and action), tremendous number of women involvement in income generation activities and able to obtain credit from financial institutions etc.

4.1.7. Access to resources and control over Mostly male keeps control over the resources. Generally, in most of the cases the social norms as well as culture determines the resource allocation and access. For an instant, in most of the society the land ownership remains with the male member of the household. It has reinforced the women’s dependency on man and created obstacles in capacity of women to make livelihood choices independently. Another example, women involvement in the care of pet animals like goat, pig, buffalo, cow etc. is very high in terms of time devotion and labour. However, when it is sold the money goes to the pocket of male, women never claim her share. This is the common practice of Nepalese society. Generally, women are not given the entitlement of property right, which has deprived women more. However, there is a recent amendment in the law for equally transfer of property to daughters.

4.1.8. Women Entrepreneur Barriers During the interaction with the BSC beneficiaries following specific women barriers of entrepreneurs were discussed and agreed from the discussion floor. The constraints highlighted below do not reflect the specific beneficiaries in the target areas but are just summarized in general, that may be helpful to take into those considerations for designing interventions.

a. Usually women are mostly hesitated to talk with the strangers and usually shy in nature and difficult to express her views. Due to Nepalese socialisation pattern women are not allowed to talk with strangers from the childhood. Women talking with a stranger are viewed as a ‘loose character’ and even if she did, later on, she has to hear lots of gossiping from others. Shy character of women is also one of the major barriers in Nepal but usually presumed as an asset that is usually liked by all male.

b. Women are less educated mostly school dropouts so they are not able to plan and

make good decisions mostly in marketing and financial calculation. They do not have any ideas for product diversification or processing for value addition. Women beneficiaries interacted have very limited skills and knowledge about the products. Women are not independently operating their business but usually are supported by male (husband, brother, etc.) mostly in analytical and marketing.

c. Limited information and knowledge about market and so do not have capacity to

foresee market demand. Women are usually not actively participating in knowledge and information gathering from various sources. Market is something

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beyond their scope of work. They can work on what they have been doing in the past. Getting order and selling products in the market is a big problem to them.

d. Women entrepreneurs usually do not have capacity to invest more amounts. They

are very weak in monetary asset. Usually their assets are jewellery and furniture accessories provided to them during the time of marriage by her father and mother. For investment in business, she has to sale her assets, depend on husband, and take loan from financial institutions. Women are now having easy assess with the women groups and cooperatives for getting small amount of loans but if she needs more amount to be invested then she has no other option rather then to once again depended on her husband.

e. Elder family members do not allow women to spend night outside home even for

work. With exception to few castes, usually women in Nepalese culture are not allowed to stay outside alone. In business, there may be many incidences where women may have to stay out of home for procurement of inputs and marketing of products. However, there are Tamang in Okharpauwa & Kakani areas who are free to stay outside home for various works.

f. There is a lack of skilled manpower in the local village for business operation.

There are also incidences of male member migrating to urban areas or migrated to other countries for work. Usually in local village efficient manpower are not available. Women are left at home alone and not able to start or operate business alone. During the interaction in Sirutar, one young dynamic women Ms. Mira Raj Thala was initially operating a small retail store in the village before her husband migrated to Arab country, but now she has close down due to difficulty working alone in spite of good sales revenue. She also express that she doesn’t need to work as her husband is sending money every month. She is also ready to start later the same old retail store business.

g. Lack of technical skills for non-farm enterprises except traditional agriculture:

Women are found to be working moreover in their land field for cultivation of agriculture commodities due to transfer of skills from one generation to another. They are good in traditional agriculture farming concept but are not much aware of new improved farming practices. In case of non-farm based enterprises women lack basic skills. Women beneficiaries express that they have limited technical skills (disease control, quality seed etc.) in agriculture farming.

h. There is very limited land owned by the beneficiaries (less than 508 Square

Metre) for commercial agriculture farming. Most of the areas visited except Nuwakot District, due to rapid urbanization land is mostly been converted in building houses. It is observed that there are very little opportunities in the near future to start any venture, which is depended on agriculture land.

i. In general, women have low risk bearing capacity. They are very less capable in

taking risk in business compare to men. They fear from taking risk due to low level of confidence and dependency with their husband in the past. Unless she is supported by her husband in decision-making, it is almost impossible to make

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any decision by her alone. They also expressed low level of analytical capabilities for calculation of cost-benefit, investment amount and accounting. Usually women are not much exposed and so do not get an opportunity to explore outside environment. In Thecho VDC, Ms. Krishna Kumari Maharjan, wife of Mr. Pancha Lal Maharjan in the past could not even travel alone Kathmandu market and she usually takes her husband support.

j. Most of the women shared that they are mostly busy in housework and hardly

gets time to work for other business. Mostly women in her young age, she is mostly busy in taking care of children until they grow old and later in her age even she is willing to do something she will not be physically capable and her level of motivation will be already down. This is one of the major barrier observed during the discussion with the women participants. One middle age women in Kirtipur expressed that she is very much willing to start and work in a new profitable business but she hardly gets sufficient time to work and so she is now requesting other women to join hand with her so that all can share time.

k. Beneficiaries have no knowledge about group business approach. In any business,

there are ways of working in a group to benefit all especially in procuring raw materials and collective marketing. This working approach is not known to them. Due to very limited capital with the beneficiaries to start-up new venture, this group approach could be best suitable to them.

l. Women are not getting required support from her male family members and

husband. It does not mean that there is no support from their husband but due to their own internal capacity to do many things, they are depended with their husband and he may not be supportive in all aspects.

m. There is no clear understanding between IG activities and commercial business

among the target beneficiaries: Most of the women are only involved in income generation activities by selling few agriculture products near by local market. They do not have an idea of commercial business. Most of the BSC beneficiaries are still doing income generation activities. They do not understand about doing business in volume and making more profits. They are doing business as a supporting past time activities to support partially in their monthly expenses.

4.1.9. Opportunities in BSC working areas Five VDCs of BSC target areas are near by urban market centres i.e. Lagankhel, Koteshwor, Baneshwor, Kalimati and Thamel. Similarly, they can get the necessary raw materials (seeds, fertilizers, packaging materials) easily from the Kathmandu markets. Due to the reason that the local resources i.e. water, forest and fodder are available in a limited quantity the beneficiaries are engaged in off-farm enterprises. On the other hand, there are possibilities of establishing and expansion of new business ventures supporting agro-based and tourism business in Kakani and Okharpauwa VDCs located in Nuwakot district. The area is having natural resources (water, forest, firewood, forage etc.) that are necessary for establishing and operating any enterprises and a favourable climate for agriculture based enterprise i.e. Strawberry, Vegetables, Trout fish, Asparagus,

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Mushroom, Floriculture and restaurant business. All BSC working areas have all weather (can access through out the year) road access and electricity facility available. However, there are very few areas where three-phase electricity may not be available that is required for high ampere machinery that is to be installed for processing of products. Similarly, few VDCs are difficult to access easily due to narrow and earthen roads.

Table 5: Listing of opportunities available in two major clusters

Clusters Opportunities Cluster A: Sirutar, Sainbu Bhainsepati & Chapali Bhadrakali

The traditional skills of the women in these areas are vegetable production and livestock rearing. This cluster is also famous for milk and vegetable production. Though the land holding of the potential women entrepreneurs is around 508 Square Meter per Household, some women are still producing vegetable commercially and getting higher price from the markets. However, the growing populations in local community, the women also have choices for off farm business like Bakery, candle making, trade (grocery shop), restaurant and others. As these areas are near by Kathmandu market, the local women feel easy to procure necessary raw materials and market the outputs in the local or Kathmandu market centres. Likely, they can procure better technology easily from the Kathamndu market. On the other hand, most of the women have already involved in the cooperatives or informal groups, they feel comfortable to get loan for an enterprise.

Cluster B: Thecho & Kirtipur

Most of women in this cluster are engaged in off-farm business like Nepalese carpet, cloth making, handicraft (statue, carpentry, jewellery) and in services sector i.e. teashop, grocery shop and small restaurant. Most of women beneficiaries have their own loom for carpentry and cloth production. Similarly, few of them are also producing vegetable. There are few promoters helping for local women beneficiaries on procuring raw materials and marketing carpets, statue and other handicraft products. Cluster areas are very close to the Kathmandu market, so local beneficiaries can easily procure raw materials and sell their produce.

Cluster C: Kakani & Okharpauwa

The main sources of income for local community people are Vegetable and Strawberry. Apart from these, the other possibilities for income generation are Mushroom, Asparagus, Floriculture, Kiwi, Ground apple and Trout fish. There are many organisations supporting to the farmers and poor families in income generating activities. Most of them are providing skill trainings, subsidy for seeds and seedling, research in agricultural products and community mobilizations; but the farmers are not sufficiently aware to take the advantages from these organizations. There are many opportunities for any enterprise supporting agro-based and tourism businesses due to popularity for urban population visiting these areas for spending their holidays. The area is having natural resources (water, forest, firewood, forage etc.) that are necessary for establishing and operating any enterprises and a favourable climate for agriculture based enterprise i.e. Strawberry, Vegetables, Trout fish, Asparagus, Mushroom, Floriculture and restaurant business. Many business promoters are working in Mushroom, Floriculture, Strawberry and Trout Fish (Agro-business centre for research & development, Agro-forestry centre, CCI and others.

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4.1.10. Interview findings from existing women entrepreneurs and cooperatives

Interviews were done with 14 existing entrepreneurs from the BSC project areas with the help of questionnaire form. The questionnaire form are entered in the Excel sheet and analyzed with the findings presented as below. The percentage figure calculation from the respondents is provided in the bracket: A. Findings from interviews with Women entrepreneurs: Enterprise start-up: Most of the enterprises have started by their own personal interest (64%), some (14%) have started due to their traditional business run by their ancestors, and others have started by replicating what others are doing profitable ones. Most of these enterprises are operated in own land (78%) and very few in rented house (25%).Enterprises are mostly started due to skill (50%) followed by availability of resources (35%). Small business are usually operated and managed by self and with supports from the family members. Where as few staffs are employed on a contract basis when ever necessary. Registration: Almost all (92%) enterprises are started without registration due to lack of knowledge (64%) and are many have ignored due to low quantity transaction and so does not felt it’s necessity. Investment amount: Enterprises were usually started with a minimum starting investment of Rs. 20,000 and there are very few well-established enterprises with an invested amount of Rs. 600,000. Profit margin of an enterprises ranges from 12 to 70 % depending upon selection of enterprise and maximum selling price. For example, in Mushroom business operated commercially at Thecho VDC where profit margin is 60% with average production of 100 kg per month at selling price of Rs. 120. In case of investment required mostly, people receive money from cooperatives (42%), family members (25%), groups (25%) and friends (7%). Existing financial system are group guarantee (35%), collateral (25%) and credit (28%). Skill: Most of the existing entrepreneurs (57%) have common technical knowledge that is necessary for production but have less knowledge on product development (28%) and no knowledge on sales and marketing. Entrepreneurs have received technical skills from various organisations and few have learned by self. They have express further skills required on marketing (28%), product development (28%), managerial (14%) and accounting (14%). Most of the service provider available in the district are NGO (35%), Government (35%). and other technical institute (14%). Many (71%) have also shared that they are willing to pay, if required for receiving skills.

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Marketing: Most of the marketing related issues are not getting reasonable profit margin and difficulty in identification of end market opportunities (57%), Low quality of products (25%) and low volume of production (14%). Transportation and Logistics: Usually products are transported up to the market place through public vehicle (35%) by bus or taxi, porters (25%), and private owned vehicle (14%). Due to the high transportation cost, entrepreneurs are interested in-group marketing approach to reduce transportation cost and reduction in risk for marketing. Market: Most the entrepreneurs sell their products to the near by local market (50%), Lalitpur (14%) from few VDCs and in the Kathmandu major markets (28%). Work division between men and women: Entrepreneurs’ works has been basically, categorized as: 1. decision-making authority, 2. Account/Finance, 3. marketing and 4. Production/Cultivation. In the study area, it has observed that there has been equal participation and division of work. Mostly man takes responsibilities of decision-making, marketing and account /finance where as women concentrates more on production aspects. Women met do not have required analytical skills and have to depend more on their husband or male family members for support in that aspect. Judgment about entrepreneur’s attitude and trait: Most of the entrepreneurs came across are concern for high quality, followed by information seeking and risk taking and very few are initiative and problem solving. Overall constraints: Low level of productivity, identification of target market, marketing, salesmanship, and unavailability of high quality raw materials are the major concerns put forward by the women beneficiaries. Similarly, other concerns were literacy, disease and pest control, irrigation and fertilizer availability. B. Findings from interaction with the Cooperatives Most of the cooperatives interviewed basically, does saving and credit activities with the size of members from 28 up to 600. Smallest cooperatives were Birkeshowari in Okharpauwa and largest were Panga saving and credit cooperatives, Kirtipur, Panga. Monthly saving scheme in practice are Rs. 50 and Rs. 100. The cooperatives are disbursing minimum loan size from Rs. 10,000 up to Rs. 100,000. Apart from credit and saving very few are also providing skill base trainings on Accounting, Marketing, Networking and Management. They preferred their money to be invested in income generation, new enterprise creation or expansion and regular house expenditure. They have shared that they usually ask for business plan but not in details.

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Major problems identified during the interactions are limited savings from their members due to low income from their regular business. Due to the reason, savings from them is low and are not able to provide sufficient loan to their members as requested and sometimes difficulty in loan recovery. They have limited educated and skilled manpower to perform their regular operations i.e. accounting, coordination and networking, and awareness & promotion activities. Members are not very active and mostly busy in their household works3. They lack accounting and business operation and networking with various similar other financial institutions. Few interventions identified in the cooperatives to upgrade them are:

Increase their members by conducting awareness and promotion activities. Build their capacity of the cooperative staffs by training them on computer base

accounting packages, preparation of business plan, etc., Improvement in office environment by investment in office equipment and

furniture (computers and modern furniture)

Table 6: List of cooperatives and groups working in BSC target areas

SN

Name of cooperative/Group District VDC No. of members

Monthly saving

Loan amount

1 Bhagawati Mahila Bikash Kendra Lalitpur Sainbu 40 n/a n/a 2 Balkumari Mahila Bikash Kendra Lalitpur Sainbu 30 n/a n/a 3 Brahmayani Mahila Bikash Kendra Lalitpur Thecho 35 n/a n/a 4 Nawa Durga Mahila Bikash Kendra Lalitpur Thecho 45 n/a n/a 5 Women development group Kathmandu Chapali Bhadrakali n/a n/a n/a 6 Panga Women Saving & Credit

Cooperation Kathmandu Kirtipur, Panga 596 100 30,000

7 Sidhur Jagrit Women Group Kathmandu Kirtipur, Panga 60 100 n/a 8 Bishnu Devi Mother Group Kathmandu Kirtipur, Panga 60 100 n/a 9 Bhajangal Pragatisheel Women

Group Kathmandu Kirtipur, Bhajangal 60 100 n/a

10

Barahi Ganesh Women Group Kathmandu Kirtipur, Bhajangal 60 100 n/a

11

Single Women Group Kathmandu Kirtipur, Bhajangal 60 100 n/a

12

Sahayogi Women Group Kathmandu Kirtipur, Bhajangal 35 100 n/a

13

Pragati Women Group Kathmandu Kirtipur, Bhajangal 60 100 n/a

14

Somalingeshwar Women Saving & Credit Cooperative

Bhaktapur Sirutar 150 100 n/a

15

Nawa Bihani Multiple Cooperative Nuwakot Okharpauwa 50 n/a n/a

16

Kaule Devi Saving & Credit Cooperative

Nuwakot Okharpauwa 50 30/50 10,000

17

Kakani Women's Saving & Credit Cooperative

Nuwakot Kakani 73 100 10,000

Note: Regular monthly meeting conducted in different dates of the month, Source: BSC database

4.1.11. Case: Basla Devi Soap Enterprise – Situation of Enterprise Basla Devi Soap Enterprise was located in Saibu VDC ward no 8, Lalitpur district. VDC is adjoining to Lalitpur Sub-Metropolitan City and has been developed as a residential and semi-urban area. The VDC is accessible by road and rich in other physical facilities (electricity, communication, drinking water, primary health centres). The advantage of the VDC is that it is accessible by all three major market cities; Kathmandu, Patan and 3 House works : Taking care of family members in preparing foods (tea, snacks, lunch, dinner etc.,) cleaning utensils and washing clothes

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Bhaktapur. There are very few support organisations except Patan Chapter (a business networks). The chapter is active to provide credit loan and collect savings. However, the area is also potential for other small enterprises i.e. off season vegetables farming, poultry farming, candle making, incense sticks, tailoring, dry snacks food making, and shoes enterprises. (Source: interaction with group of entrepreneurs) Women are just idle in the VDC working only at home and taking care of family the members. One of the members who is of middle class with minimum education in a group encouraged others (mostly illiterate women) to start a new soap factory and requested for providing training to them from the Lalitpur District Education Office. They formed a group with nine members in a year 2062 (BS) and received seven days soap making training. The outcomes from the group formation were:

Women are exposed and engaged the enterprise They are independently capable to express own ideas and solve problems Involved in decision making process Involved in the community works Income generated are self handled and use by them They have access to resources.

The soap enterprise was in operation only for three years from 2062 (BS). They only used to work for 15 days a month and produced 60 kg soap in one lot (3 lots a day). The soap factory is now not in operation and closed down. The major causes behind closure of the soap factory after interaction with the women and male groups were as follows: (Source: Interaction with male Focus Group and women entrepreneurs)

They were not able to have market access due to lack of market information. Besides, they started their enterprise without understanding proper market dynamics specially competition factor and strategy to overcome.

They did not actually calculate the actual cost of production but only rely on the

trainer’s reference to set the final selling price. Finally, the cost of production was much higher than the selling price. As per the interaction with the women entrepreneurs, they used to sell 1 kg soap for Rs. 27, which was actually fixed during the training by the trainer, but the cost of production was much higher than the sales price. Trainer was may be technically sound but he it seems he does not have an idea to price a product.

Since the enterprise was established with a group effort, transparency in

accounting system should have been maintained. It causes lack of trust among the shareholders and does not have and idea whether the enterprise is making any profits or bearing losses.

After the training had been conducted, it was understood that the enterprise was

not affiliated with any relevant organisation, nor they got further support from the previous one. As a result, of that, the enterprise was not supervised with regular business counselling, refresher training, and marketing support and so on.

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Since all women entrepreneurs were housewives, they devoted only the

remaining time after they are free from their household’s work. They also did not maintain time schedule so that it could have been properly managed to operate whole day with the available human resources. May be there was also confusion between each individual’s roles and responsibilities and there is a confusion who does what.

Due to the reason that the group of women entrepreneurs’ owns factory it was

also difficult to get support from their respective husband in keeping accounts, marketing information and selling the products in the market.

The following lessons can be learnt from the Basla Devi Soap Enterprise for future project interventions.

Selection of suitable enterprise for women owned by a group is very important otherwise, there will be a conflict later on. Selection should be based on various factors i.e. market demand, availability of resources and identification of consumers and their needs.

Before starting enterprise, only product making skill is not only sufficient and

apart from other factors, feasibility based on cost benefit analysis should be prepared. Cost benefit analysis will guide you about all costing details and also tell whether it is profitable or not.

Skill training should also be combined with the operation and management

aspects in the training module. This adds value to the women entrepreneurs to understand management of day-to-day operation of their business. In addition to that, as a group owned the enterprise it was felt necessary to teach more about group dynamics and creating environment to work in a group.

One time training is something like having horse without its rein. Apart from

training regular support and supervision in checking product quality, marketing activities is very essential in case of women entrepreneurs who are starting enterprise very fist time.

After establishing the enterprise, they should be affiliated with the service

providers i.e. business houses and relevant organisations who can provide them post training services.

While building the capacity of female entrepreneurs, the male representative

should be involved. Women entrepreneur needs their supports especially in account/finance and marketing.

The importance of the group process should not be underestimated. It is the

development of dynamic cohesive action groups (particularly of women), able to articulate their needs and act together, that will generate solutions to problems that are relevant, practical and of high visibility.

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Conclusion: In a Nepalese society operation and management of an enterprise in a group is not feasible due to conflict in work division and roles and responsibility. In the case, soap factory was close down due to various technical and management fault but the real reason behind its failure is due to operation by a group of women. However, there are possibilities in a group business especially in input procurement and collective marketing where women entrepreneurs usually demand.

4.1.12. Case: Patriarchal4 socialization situation leading difficulty in learning new skills – Ms. Krishna Kumari Maharjan

Ms. Krishna Kumari Maharjan is a resident of Thecho VDC residing there from many years. She is happily married with Mr. Panchalal Maharjan and having three children and the youngest is just 6 months. She is a member of women’s group operated by Patan Chapter. Realizing high cost of living expenditure and to support her family by additional income from other sources, she once joined training institute near by Thecho area to learn tailoring skill with a hope to open tailoring shop near by her house. She could not complete the training course due to the Patriarchal socialization practiced in the house where in her mother in law usually shout at her early in the morning for no reason. This has created fear in her mind, could not concentrate on work, and depressed her the whole day. By character, she is very shy in nature not able to mingle with the people in the community. In the past, she even could not go outside alone without her husband. Her husband is supportive to her and helping her to exposed in the outside world and to take own initiatives to do small work. Breadwinner in her family is her husband who is into making Sculptures of various furious god and goddess prepared from brass material from the past 13 years. He gets order from traders especially from Shakya and Bajracharya community located at Patan Dhoka, Lalitpur who are having good contacts with the international buyers. In his small workshop, he has two more staffs who are working with him in contract basis. He had taught four other boys to do similar work and they are earning similarly as he does. He

4 Dominance of men in social or cultural systems

Ms. Krishna Kumari Maharjan (left) and Mr. Panchalal Maharjan (right) along their youngest daughter in their sculpture workshop.

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shared that in Khokana area such works has been effectively carried out by Tibetan women but Newari women are very shy and are not ready to take own initiatives. He had learned such skills by observations and do not have undergone formal training. He is proud to say that at least he is able to build one house and repairing another traditional house with the income by selling his skills. If he had not learned such skills, he may be at present working in some other country as a labour. He is facing problems as well. He needs more contacts and orders but till date from the past 13 years he could not meet even single key buyers. He says with his sad voice, the contractors whom he is getting order says, “one day I will arrange meeting with my buyer” but it did not happened till date. He does not have any clue what happens after he delivers prepared sculptures. Normally after 15 days work, he gets Rs. 6000 for 12-inch sculpture and he have to spend roughly Rs. 1,000 in purchasing raw materials. Mainly his work is carving and polishing after design has been finalized by someone else. Design is normally finalize conceptually in paper and then model is prepared in wax. It is then coated with mud and then filled with brass to get the desired shape. Later wax will be removed by heating. He is very enthusiastic to learn design and creative work but he does not have access. There are other specialize works on carving and he is very interested to learn. He sees small investment in such venture is not a problem. Actually to start this venture, he has received money from same women group where his wife is a member and further when it start growing and required more investment he has to take money from finance company. He has taught his wife all works by involving in most of the activities. Ms. Maharjan is now capable to help in the workshop by polishing and minor carving works and managing things in his absence. He is visioning to expand small work by adding few more staffs. If possible, he is also planning to open one retail shops so that his wife will take care. He is expecting more support from the BSC project to help his wife to start a new venture by providing behavioural and managerial skills so that she is more proactive to manage business. Source: Interview at the beneficiary home

4.2. Product/Service Selection

During the FGD conducted with women and male groups, the potential products/services were listed with their knowledge on future possibilities as a profitable venture that will give better return. It was actually difficult to exercise scientific selection process together with the groups due to their level of understandings and time constraint. However, the selection process was still made participatory by involving all study team members and the BSC staffs those who were directly involved in the survey for finalizing the final selection of potential products. The whole team after completion of all the FGDs sat together and discussed on five indicators: 1. local available resources, 2. skills, 3. technology, 4. investment required, 5. Local market potential. Based on the discussions during the FGDs scores were given for both attractiveness matrix and the ranking matrix which is describe below.

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4.2.1. Attractive Matrix Exercise: The products listed from the FGD discussions are one level screened with the help of two broad criteria: 1. Potential to increase rural income and 2. Potential number of target beneficiaries that can be involved in that activity. The study team then filled the table with Low (L), Medium (M) and High (H) with respect to the given two broad criteria column relating with the field information in the respective VDC. The table filled is given below: District: Sirutar

SN Products/Services Potential to Increase

Income Potential number of BSC

Beneficiaries 1 Bamboo product making L L 2 Incense Stick (Bateko Dhoop) M H 3 Candle making M H 4 Doll and flower making form cloth L L 5 Incense stick H H 6 Knitting and weaving form wool and cloth L L 7 Raw materials used for preparing alcohol (Marcha) M L 8 Mushroom H M 9 Photocopy M L

10 Retail shops H H 11 Seasonal and off seasonal vegetables H H 12 Soap making - Solid and liquid M L 13 Milk M M

The above table is graphically plotted as shown below:

District: Sainbu

SN Products/Services Potential to Increase

Rural Income Potential Nos. of MSE

Beneficiaries 1 Bakery products L L 2 Bee keeping M L 3 Buffalo and cow farming M M 4 Candle making M H 5 Dry snacks (Daalmoth) M L 6 Incense stick M H

Potential Nos. of BSC Beneficiaries

Not Attractive

Attractive

Potential to Increase Rural Incom

e

High

Medium

Low

Low Medium High

Sirutar

1

2 3

4

5

6

7

8

9

10 11

12 13

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7 Mushroom H M 8 Pickle making L L 9 Poultry farming H M

10 Silk cloth weaving & knitting M L 11 Soap making – Solid M L 12 Tailoring M H 13 Vegetable H H

Chapali

SN Products/Services Potential to Increase

Rural Income Potential Nos. of MSE

Beneficiaries 1 Beads L L 2 Beauty parlour M M 3 Candle making H H 4 Embroidery – Sari M M 5 Floriculture - Seasonal M M 6 Lapsi candy and pickle M H 7 LPG Gas Depot - Collection & distribute M L 8 Mushroom farming M H 9 Potato chips M L

10 Spice production - Masala M L

Potential Nos. of BSC Beneficiaries

Not Attractive

Attractive

Potential to IncreaseIncom

e

High

Medium

Lo

Lo Medium High

Sainbu

1

3 4

5 6

2

7 9

10

11 12

8

13

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Thecho

SN Products/Services Potential to Increase

Rural Income Potential Nos. of MSE

Beneficiaries 1 Bakery M L 2 Beauty Parlour H M 3 Dry snacks (Daalmoth/Bhujiya) M L 4 Duck farming M L 5 Electric material repairing and wiring M L 6 Floriculture – Seasonal M M 7 Furniture M L 8 Grocery shop H M 9 Handicrafts M L

10 Knitting and weaving M L 11 Livestock farming – goat M L 12 Milk based sweet making M L 13 Mushroom farming H M 14 Mustard seed oil processing M L 15 Nepali carpet (Galaicha) M H 16 Pickle M L 17 Potato chips M L 18 Potato farming M M 19 Poultry farming M M 20 Rice mill M L 21 Sculpture - wood and copper M M 22 Sweater weaving L M 23 Tea and coffee shop H H

Potential Nos. of BSC Beneficiaries

Not Attractive

Attractive

Potential to Increase Rural Incom

e

High

Medium

Lo

Lo Medium High

Chapali

1

3

45 6

27

9

10 8

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Kirtipur

SN Products/Services Potential to Increase

Rural Income Potential Nos. of MSE

Beneficiaries 1 Bakery M L 2 Incense Sticks (Traditional Agarbatti) M H 3 Candle making H M 4 Junk food (Daalmoth) M L 5 Fibre base product H L 6 Incense stick H M 7 Mushroom farming H M 8 Poultry H M 9 Retail shop H H

10 Soap making – Solid M L 11 Tailoring H M 12 Vegetable – seasonal H H 13 Nepali Carpet M H

Potential Nos. of BSC Beneficiaries

Not Attractive

Attractive

Potential to Increase Income

High

Medium

Low

Low Medium High

Kirtipur

1 2

3

4

5 6

79

10

8

11 12

13

Potential Nos. of BSC Beneficiaries

Not Attractive

Attractive

Potential to Increase Income

High

Medium

Low

Low Medium High

Thecho

1

3 4 5 6

2

7 9

10

8

11 12

13

14 15 16

17

18

19

20

21

22

23

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Okharpauwa

SN Products/Services Potential to Increase

Rural Income Potential Nos. of MSE

Beneficiaries 1 Asparagus H M 2 Bee-keeping M L 3 Cardamom M L 4 Floriculture H H 5 Ground apple M L 6 Mushroom H H 7 Pickle – radish and dry radish M L 8 Potato Chips M L 9 Poultry M M

10 Strawberry farming H H 11 Trout fish farming H M 12 Vegetable – Radish, Cabbage, Cauliflower H H

Kakani

SN Products/Services Potential to Increase

Rural Income Potential Nos. of MSE

Beneficiaries 1 Asparagus H M 2 Bee-keeping M L 3 Cardamom M L 4 Floriculture H H 5 Hotels & Restaurant H H 6 Mushroom H H 7 Pig farming M M 8 Potato Chips M L 9 Potato farming M M

10 Poultry farming M M 11 Kiwi fruit H L 12 Soap M L 13 Strawberry farming H H 14 Tailoring M L 15 Trout fish farming H H 16 Vegetable – Radish, Cabbage, Cauliflower H H

Potential Nos. of BSC Beneficiaries

Not Attractive

Attractive

Potential to Increase Income

High

Medium

Lo

Lo Medium High

Okharpauwa

1

2

3

4

5

6

7

9

10

8

11 12

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Table 7: Listing of selected products/services from the attractiveness matrix

Sirutar Sainbu Chapali Thecho 2. Traditional Incense Sticks 3. Candle making 5. Incense stick 8. Mushroom 10. Retail shops 11. Seasonal and off seasonal vegetables 13. Milk

3. Buffalo and cow farming 4. Candle making 6. Incense stick 7. Mushroom 9. Poultry farming 12. Tailoring 13. Vegetable

2. Beauty parlour 3. Candle making 4. Embroidery - Sari 5. Floriculture - Seasonal 6. Lapsi candy and pickle 8. Mushroom farming

2. Beauty parlour 6. Floriculture - Seasonal 8. Grocery shop 13. Mushroom farming 15. Nepali Tibetan carpet (Galaicha) 18. Potato farming 19. Poultry farming 21. Sculpture - wood and copper 23. Tea and coffee shop

Kirtipur Okharpauwa Kakani 2. Traditional Incense Sticks 3. Candle making (synthetic) 5. Fibre base product 6. Incense stick 7. Mushroom farming 8. Poultry 9. Retail shop 11. Tailoring 12. Vegetable - seasonal 13.Nepali Carpet

1. Asparagus 4. Floriculture 6. Mushroom 9.Poultry 10. Strawberry farming 11. Trout fish farming 12. Vegetable – Radish, Cabbage, Cauliflower

1. Asparagus 4. Floriculture 5. Hotels & Restaurant 6. Mushroom 7. Pig farming 9. Potato farming 10. Poultry farming 11. Kiwi fruit 13. Strawberry farming 15. Trout fish farm 16. Vegetable – Radish, Cabbage, Cauliflower

4.2.2. Ranking Matrix After filtering the products from the attractiveness matrix, the listed products from seven project VDCs of three districts was finally ranked with the help of five specific criteria: 1. Available resources, 2. Skill – Adapted and Traditional, 3. Technology, 4. Investment, 5. Market potential Illustration of specific criteria: 1. Available local resources: Local resources are especially looking at the availability in the near by target areas. It can be natural resources or physical human built infrastructures i.e. Water, Electricity, Road, Forest etc. Weight given is 0.2

Potential Nos. of BSC Beneficiaries

Not Attractive

Attractive

Potential to Increase Income

High

Medium

Lo

Lo Medium High

Kakani

1

2

3

4

5 6

79

10 8

11

12

13

14

15

16

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2. Skills – Adapted or Traditional: Skills available at present with the women that can be traditional that is learned by knowledge passed on by forebear or adapted through formal trainings received from the institute or individuals. Weight given is 0.15. 3. Available Technology: The existing available technology in the district with respective to the product listed above. Weight given is 0.05. 4. Capital investment / availability of credit: The level of investment required to start a selected enterprise that is associated with the risk bearing capacity and availability of source of investment. For example: Some business venture can be started with very low investment that can be easily made available through saving & credit groups or cooperatives but in an opposite scenario where the investment is high source of fund may also be an barrier to start a venture. Weight given is 0.25. 5. Market potential: Only local market possibilities were taken into consideration due to the limited scope from the entrepreneurs at local level. Weight given is 0.35. With the above five criteria’s, sample Ranking Matrix with the weights is provided below and elaborated in more details in the next paragraphs.

Products/Services SN Criteria Weight

1 Available of Resources 0.2 2 Skill - Adapted & Traditional 0.15 3 Technology 0.05 4 Investment 0.25 5 Market potential 0.35

RESULT Percentage of Maximum Score 1 RANK To the above specific five criteria’s developed, it was given weighted from the number 0 to 1 looking at the existing target VDC scenario as shown in the given table above. Further, the table is filled under the products/services column by giving the number from 1 (lowest) to 5 (highest) with respective to the selected products/services and looking at the criteria. Finally, the Result is calculated by simple multiplication of number received in the respective column and the weight. Percentage of score is calculated by dividing the score obtained as a RESULT with the total maximum score of 5. Ranking is sequentially calculated based on the highest scored towards the lowest. The following table below illustrated the detail procedure followed in each project VDC with the ranking exercise. Sirutar

Products/Services SN Criteria Weight 2 3 5 8 10 11 13

1 Available of Resources 0.2 2 2 4 4 4 4 3 2 Skill - Adapted & Traditional 0.15 4 3 3 3 4 5 4 3 Technology 0.05 4 4 3 4 4 5 3 4 Investment 0.25 5 4 4 3 4 4 2

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5 Market potential 0.35 5 5 3 5 3 5 4 RESULT 4.2 3.8 3.45 3.95 3.65 4.55 3.25 Percentage of Maximum Score 1 84 76 69 79 73 91 65 RANK 2 4 6 3 5 1 7

Final products: 1. Seasonal and off seasonal vegetables (11) 2. Traditional Incense Sticks (2) 3. Mushroom (8) 4. Candle making (3) 5. Retail shops (10)

Note: number in brackets represents serial number of products listed in each VDC Sainbu

Products/Services SN Criteria Weight 3 4 6 7 9 12 13

1 Available of Resources 0.2 3 3 2 5 4 3 4 2 Skill - Adapted & Traditional 0.15 5 3 3 3 4 2 5 3 Technology 0.05 2 3 3 4 4 2 4 4 Investment 0.25 1 4 3 3 3 3 4 5 Market potential 0.35 3 5 4 5 5 3 5

RESULT 2.75 3.95 3.15 4.15 4.1 2.8 4.5 Percentage of Maximum Score 1 55 79 63 83 82 56 90 RANK 7 4 5 2 3 6 1

Final products: 1. Vegetable (13) 2. Mushroom (7) 3. Poultry farming (9) 4. Candle making (4) 5. Incense stick (6)

Chapali Products/Services

SN Criteria Weight 2 3 4 5 6 8 1 Available of Resources 0.2 2 3 2 5 5 4 2 Skill - Adapted & Traditional 0.15 2 4 3 4 4 2 3 Technology 0.05 3 4 2 4 3 3 4 Investment 0.25 3 4 3 3 4 4 5 Market potential 0.35 2 5 3 5 5 5

RESULT 2.3 4.15 2.75 4.3 4.5 4 Percentage of Maximum Score 1 46 83 55 86 90 80 RANK 6 3 5 2 1 4

Final products: 1. Lapsi candy and pickle (6) 2. Floriculture – Seasonal (5) 3. Candle making (3) 4. Mushroom (8)

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Thecho Products/Services

SN Criteria Weight 2 6 8 13 15 18 19 21 23 1 Available of Resources 0.2 2 4 4 4 4 4 3 3 4 2 Skill - Adapted & Traditional 0.15 2 3 3 3 5 4 3 5 4 3 Technology 0.05 1 4 4 4 4 4 4 4 4 4 Investment 0.25 2 3 3 3 2 3 3 3 5 5 Market potential 0.35 2 5 3 5 5 4 4 5 4

RESULT 1.95 3.95 3.25 3.95 4 3.75 3.4 4.05 4.25 Percentage of Maximum Score 1 39 79 65 79 80 75 68 81 85 RANK 9 4 8 4 3 6 7 2 1 Final products:

1. Tea and coffee shop (23) 2. Sculpture - wood and copper (21) 3. Nepali carpet (Galaicha) (15) 4. Mushroom farming (13)

Kirtipur

Products/Services SN Criteria Weight 2 3 5 6 7 8 9 11 12 13

1 Available of Resources 0.2 3 2 3 2 4 3 4 3 3 3 2 Skill - Adapted & Traditional 0.15 3 3 4 3 2 3 3 3 3 4 3 Technology 0.05 4 3 4 3 4 4 4 4 3 4 4 Investment 0.25 4 4 3 4 3 3 4 3 3 3 5 Market potential 0.35 5 4 4 4 5 4 4 2 5 4

RESULT 4 3.4 3.55 3.4 3.8 3.4 3.85 2.7 3.7 3.55 Percentage of Maximum Score 1 80 68 71 68 76 68 77 54 74 71 RANK 1 7 5 7 3 7 2 10 4 5 Final products:

1. Traditional Incense Sticks (Bate ko Dhoop) (2) 2. Retail Shop (9) 3. Mushroom farming (7) 4. Vegetable – seasonal (12)

Okharpauwa

Products/Services SN Criteria Weight 1 4 6 9 10 11 12 13 1 Available of Resources 0.2 4 4 3 3 4 4 4 4 2 Skill - Adapted & Traditional 0.15 2 3 3 3 4 3 3 3 3 Technology 0.05 4 4 4 2 4 3 4 4 4 Investment 0.25 3 3 3 2 3 2 3 3 5 Market potential 0.35 5 5 5 4 5 5 3 4

RESULT 3.8 3.95 3.75 3.05 4.1 3.65 3.25 3.6

Percentage of Maximum Score 1 76 79 75 61 82 73 65 72

RANK 3 2 4 8 1 5 7 6

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Final products: 1. Strawberry farming (10) 2. Floriculture (4) 3. Asparagus (1) 4. Mushroom farming (6)

Kakani

Products/Services SN Criteria Weight 1 4 5 6 7 11 13 15 16

1 Available of Resources 0.2 4 4 4 3 4 3 3 5 4 2 Skill - Adapted & Traditional 0.15 2 3 3 3 3 1 3 4 3 3 Technology 0.05 4 3 4 4 3 2 3 4 3 4 Investment 0.25 3 3 3 3 3 3 3 2 3 5 Market potential 0.35 5 5 5 5 2 3 5 5 4

RESULT 3.8 3.9 3.95 3.75 2.85 2.65 3.7 4.05 3.55 Percentage of Maximum Score 1 76 78 79 75 57 53 74 81 71 RANK 4 3 2 5 8 9 6 1 7

Final products:

1. Trout fish farming (15) 2. Hotel and restaurant (5) 3. Floriculture – Tata Rose (4) 4. Asparagus (1)

4.2.3. Final selection of potential products/services: From the ranking matrix, products are selected from all BSC working areas and are finally listed as follows:

1. Asparagus - Kurilo 2. Traditional Agarbatti (Bate ko Dhoop) and Incense stick - Traditional incense

made from Nepali Lokta paper and incense powder used for worshiping god and goddess.

3. Candle - Mostly prepared by bee wax 4. Floriculture – Seasonal, Tata Rose 5. Hotels & Restaurant – Small tea shops which provides general snacks and

consumable items 6. Lapsi candy and pickle 7. Mushroom - White button and Oyster varieties 8. Nepali carpet (Galaicha) – Tibetan carpet 9. Poultry farming – which variety 10. Retail shop – Selling major consumable items with communication facilities 11. Sculpture - wood and copper 12. Seasonal and off seasonal vegetables 13. Strawberry 14. Trout fish

Note: black font denotes product and red indicate services.

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Table 8: Final potential products/services as per each cluster:

Cluster A Cluster B Cluster C SN

(Sirutar, Sainbu and Chapali Bhadrakali)

(Thecho and Kirtipur) (Okharpauwa and Kakani)

1 Traditional Incense Sticks (Bateko Dhoop)

Nepali carpet (Galaicha) Asparagus

2 Candle making Sculpture - wood and copper Floriculture

3 Seasonal and off seasonal vegetables

Traditional Incense Sticks (Bate ko Dhoop)

Mushroom

4 Mushroom Retail shop Strawberry farming 5 Poultry farming Vegetable - seasonal Restaurant 6 Floriculture - Seasonal Trout fish farm

7 Lapsi candy and pickle Vegetable

Table 9: Final selection of potential products/services as per each VDC:

S.N. VDC Final potential products/services

1 Sirutar

Traditional Incense Sticks Candle making Seasonal and off seasonal vegetables Mushroom

2 Sainbu

Vegetable Mushroom Poultry farming Candle making Traditional Incense Sticks

3 Chapali

Lapsi candy and pickle Floriculture – Seasonal Candle making Mushroom

4 Thecho

Sculpture - wood and copper Nepali carpet (Galaicha) Retails shop

5 Kirtipur

Traditional Incense Sticks Retails shop Seasonal and off seasonal vegetables

6 Okharpauwa

Strawberry farming Floriculture Asparagus Mushroom

7 Kakani

Trout fish farming Hotel and restaurant Floriculture – Tata Rose Asparagus

Note: Final selection of products and services is based on the attractiveness and ranking exercise

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4.2.4. Service market opportunities in BSC working areas Services are explored in the VDCs of BSC working areas initially by identifying existing infrastructure with the aim that these infrastructures would help us to list down potential services. In three clusters, existing infrastructures were listed down and service ideas were generated after interaction with the study team, which is provided below.

Working Cluster

Existing infrastructure

Service market opportunities

Cluster A: Sirutar,

Sainbu and Chapali

Bhadrakali

Nepalese Carpet Industries Boarding Schools Government extension offices i.e., VDC

office, Health post etc., Transporters (Trucks, Bus, Micro van,

loaders etc), Small Hotels for Newari food items Sculpture & Carpentry centres

Childcare centre for the women working in carpet industries Stationery, Photocopy, email-internet services Tea shops School dress (tailoring) and sweater (knitting) for students &

Government extension offices Medicine shops Rest room, meal, tea, coffee, beverages and exchange

services (coin change)of money for transporters Meat, LP gas, Milk and other inputs supply to small hotels but

there are already people doing it today. Tea, meal and transport services to wage based workers and

their employers Cluster B: Thecho and

Kirtipur Municipality

Boarding School Cooperatives Transporters (Trucks, Bus, Micro van,

loaders etc), Small Hotels for Newari food items GOs extension offices like VDC office,

Health post Mini sculpture & Carpentry making

industries Bag Bhairab Temple

Stationery, Photocopy, email-internet services, Bakery and other dry food items for school students as Tiffin. school dress (tailoring) sweater (knitting) for students &

Government extension offices Rest room, meal, tea, coffee, beverages and money exchange

services for transporters Meat, LP gas and other inputs supply to small hotels Vegetable collection centre and market information

dissemination, Input suppliers i.e. agriculture equipments, fertilizer, seeds

and pesticides supply (agro-vet), transport services to vegetable producers/farmers.

Flowers, sculpture of goddess and photographs and other worship materials to religious people

Cluster C: Okharpauwa and Kakani

Boarding & School, Transporters (Trucks, Bus, Micro van,

loaders etc), Hotels – small and mini GOs extension offices like VDC office,

Health post, Natural landscape

Recharge card and communication centre, Rest room, meal, tea, coffee, beverages and exchange services (coin, change)of money for transporters as well as local tourist

Meat (flesh), LP gas, Milk and other inputs supply to small hotels

Tea, meal and transport services to wage based workers and their employers

Stationery, Photocopy, email-internet services, snacks, school dress (tailoring) sweater (knitting) for students & Government extension offices

Vegetable collection centre but sustainable and market information dissemination

Input suppliers i.e. agriculture equipments, fertilizer, seeds and pesticides supply (agro-vet), transport services to vegetable producers/farmers.

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Service market in matrix: From the services listed, it is then analysed with the help of above graphical matrix with two major demand and supply indicators. From the matrix few services those are very high is demand and supply are selected which is recommended to the BSC for future intervention. Services recommended to the BSC are as follows:

Child Care Centre Communication and stationery services Readymade Dresses Raw inputs to small to large scale hotel and restaurants Vegetable collection centres Maintenance and repair centre

Indigenous and traditional skills available in the project areas are as follows:

Organic manure as a input for agriculture crops Biomass for ‘composting’ and preparing different types of ‘Compost fertilizers’ -

vermin compost Straw Mats Reviving Beaten Rice (‘Okhal’ beaten process) Handmade Paper and paper products Incense stick, ‘Dhup’ (Incense dust) Wax Candle Chalk Colouring/dying of paper and fibre Fibre based products (Allo and Dhaka) - weaving

SU

PPLY

DEMAND

Very Weak Weak Strong Very Strong

Communication and stationary services, medicine stores, Agro vet shop

Tea shops and food shop, grocery

Maintenance and Repair center

Child Care Center, Raw material input to hotels and restaurant

Readymade dresses, Vegetable collection center, mobile repair shop

Photo studio, Jewelry Making

Very S

trong

Stro

ng

Weak

Very w

eak

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Wood Carving Thanka Painting Emboss Carving Silver Jewellery Clay pot Ceramic products Herbal products Statue Metal Carving

Market is dynamic and keeps on changing as per the need of the consumers. The present demand of the products thus selected may change in future. The proposed products are based on the recommendation by the beneficiaries due to their interest and capacity.

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5. MARKET STUDY ON PRODUCT/SERVICES

5.1. Study background

The study team carried out market survey by interacting with the key market traders involved in the selected 14 potential products/services. Traders are mostly located in the urban areas purchasing products from BSC working areas. After interaction with the potential traders, few of them were listed as a ‘promoters’ those who can work with the BSC beneficiaries and were detail interviewed. In-depth interviews were done with the market promoters5 on the following issues.

Interest on Product/ Services Product Specification - Product Design, Product Price, Delivery Mechanism and

Embedded Services Approach/quality requirements for partnership - Supply/ Volume, Transfer Market

Information, Information on producers Group, Transfer of Technology, Technical Information

Value Addition - Value addition possibilities and initial costing details Types of contract Constraints Delivery Mechanism Initial Activities conducted

5.2. Study goals and objectives

BSC aims to promote women entrepreneurs products/services by engaging them in more value addition activities to develop innovative diversified products to increase their income. The aim will be fulfilled by building long-term partnership with the market traders for mutual benefits in preparing and supplying value added quality products to the market traders.

The objective of marketing strategy was:

To identify the gaps of present women entrepreneurs skills in marketing of products/ services

To explore opportunities for partnership with the market promoters To come up with the strategy to empower women entrepreneurs in this

partnership

5.3. Strategy formulation

Segmentation, Targeting and Positioning (STP): Initially women entrepreneurs need close mentoring support for her business promotion before they bring their products to the mainstream market. Segmentation: To identify unique markets of consumers with similar attributes and then find segments that are profitable. In this case attributes search are market players who are ready to partnership with women entrepreneurs.

5 Market promoter is the potential trader who is interested in partnership with the local entrepreneurs by transferring skills and knowledge to develop value added products/services for mutual benefits.

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Targeting: This refers to identifying attractive market segments and tailoring market mix to match the needs of the target consumers. In this case, target markets are local existing market centres and opportunity to acquire already existing consumers of the market promoters. Positioning: It is defining the product in the consumer's minds. The positioning in this case has been carried out by understanding the constraints of market parameters like pricing, quality, delivery and others. STP is defined with the steps as follows: Steps Segmentation Targeting Positioning

1 Market actor identified for relevant product

Targeting based on generalized customer

Vague positioning as for general customer

2 Market actor identified for specific product and product diversification

Targeting based on customer at department stores

Packaging and price competitiveness for customer at department stores

3 Market actor identified who are ready for partner with women entrepreneurs

Targeting based on existing customer of market actors

Market parameters relevant to market actors

4 Market Promoters identified who are ready to partnership with women entrepreneurs and also work together

Targeting based on existing customer of market promoters

Market parameters relevant to Market promoters

Market Promoter’s Profile: Those who are willing to build partnership with the BSC women entrepreneurs and empower them for business promotion their name list are tabulated below. For more detail information, refer annex with the heading promoter’s profile.

1. Home net - Om Thapaliya 2. Standard Nursery Group - Rajendra 3. Lotus Land Organic Farm - Bishnu 4. Agro Forestry Promotion Centre ( AFPC) - Sameer Man Shrestha 5. Love Green Nepal/ PRAKRIT - Narayan P Gyawali 6. Ninam Ridum Bio Handicraft Centre - Pramila Rai 7. Mahaguthi - Uttara Malakar 8. Nayajivan Sahakari, Okharpauwa - Kancha Man Tamang, Rajendra Titung 9. Oriental Enterprises - Upendra Shrestha 10. Kalimati Wholesale Market - Ram Krishna Sahu 11. Grameen Agro Enterprise Pvt. Ltd - Tanka Raj Parajuli 12. Agro Business Centre for Research and Development - Kamal Subba and Yadav

Karmacharya 13. Nepal Grihani Udyog - Indira Sapkota 14. Valley Feed Industries - Hari Krishna Sahuji 15. Buddha Carpet - Sunil Lama, Sharmil

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5.4. Seven P’s of Marketing of the selected products/services

Marketing analysis of the products is carried out with the 7 P's concept. This analysis is based on the discussion with market promoter and customer survey. 7 Ps of marketing or extended marketing mix is a marketing strategy tools that expands the number of controllable variables from the four in original marketing mix model to seven. This tool includes People, Process and Physical Evidence apart from Product, Price, Place and Promotion.

Product: Creation of products that it's intended customers want, characteristic of product and services that meets the needs of customers. The parameters are for the Product can be functionality, quality, appearance, packaging, brand, service, support, and warranty. Price: Price intended customers are willing to pay. The parameters for the pricing could be list price, discounts, financing, leasing options, and allowances. Place: Availability at right place, at the right time, in the right quantities. The parameters for the Place can be locations, Logistics, Channel, Market coverage, Service levels, Internet, Mobile etc. Promotion: Chosen target groups informed or educated about the products and services, one of the most important P to focus on the parameters for the Promotion could be advertising, public relation, message, direct sales, sales, media budget etc. People: All people directly or indirectly involved in consumption. The parameters for people could be Customer, internal staff, supporting organizations, employees, and management. Process: Process is procedure mechanisms and flow of activities by which product/ services are consumed. The parameters for the Process can be logistics, operation management, marketing channel, and product development process. Physical Evidence: The ability and environment in which the product or services is delivered. The parameters for the physical Evidence could be customer feedback, after sale service, and monitoring of customer.

Table 10: 7 Ps explained

Ps Description Parameters

Product Creation of products that it’s intended customers want, characteristic of product and services that meets the needs of customers.

Functionality, Quality, Appearance, Packaging, Brand, Service, Support, Warranty

Price Price intended customers are willing to pay List price, Discounts, Financing, Leasing options, Allowances

Place Availability at right place, at the right time, in the right quantities

Locations, Logistics, Channel, Market coverage, Service levels, Internet, Mobile

Promotion Chosen target groups informed or educated about the products and services, one of the most important P to focus on

Advertising, public relation, message, direct sales, sales, media, budget

People All people directly or indirectly involved in consumption

Customer, internal staff, supporting organizations, employees, management

Process Procedure, mechanisms and flow of activities by which product/ services are consumed

Logistics, operation management, marketing channel, product development process

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Physical evidence

The ability and environment In which the product or services is delivered

Customer feedback, after sale service, monitoring of customer

With the above background, the products are analysed in terms of 7 Ps in the following table. In the table products are analyzed in terms of Product, Price, Place, Promotion, Process, Peoples Perception and Physical evidences. The information obtained is from in depth discussion with the market actors along with market promoters.

Table 11: Analysis of products in 7 Ps

S.N. Item Product Price Place Promotion Process Peoples perception

Physical appearance

1 Asparagus Fresh vegetable

Seasonal fluctuation, depends on market price at specific day

Channel of market promoter

Direct selling to market promoter

Input supply and technical information from market promoters

Fresh product, Graded products

Fresh Products

2 Strawberry Fresh, Jam, Juice, wine

Seasonal fluctuation, depends on market price

Channel of market promoter

Direct selling to market promoter

Technical support from market promoter

Fresh, Graded Fresh, Well packaged Juice and Jam and wine

3 Organic Vegetable

Fresh Seasonal fluctuation, depends on market price

Channel of market promoter

Direct selling through market promoter

Technical and input supply from market promoter

Fresh, Graded Fresh

4 Candle Normal and designer

Market price for normal candle and market promoter price for designer

Local market for normal candle and Market promoter for designer candle

Shop to shop selling for normal candle and direct selling to promoter for designer candle

Technical information from market promoter

Long lasting for normal candle and different and seasonal design for designer candle

Uniform design for normal candle, seasonal design for designer candle

5 Tibetan Incense Incense sticks

Market promoter price

Channel of market promoter

Direct selling to market promoter

Technical information from market promoter

Good fragrance and long lasting

Black or brown colour incense stick

6 Rainbow Trout Fresh Market price, seasonal fluctuation

Channel of market promoter

Direct selling to market promoter

Technical information form market promoter

Fresh Fresh

7 Bulgar Sweet (Lapsi)

Fresh, Candy, pickle

Market price for fresh and Market promoter price for candy and pickle

Local traders channel for fresh and market promoter channel for candy and pickle

Local market selling and direct selling to market promoter

Technical information from market promoter

Well packaged quality candle and pickle

Fresh and well packaged

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8 Mushroom Fresh, dried and powder

Market price for fresh and market promoter price for dried and powder

Channel of market promoter

Direct selling to market promoter

Technical information, advance for input supply from market promoter

Fresh, quality dried and powdered

Certified dried and powdered

9 Fibre Products Allo fibre, thread, clothes, wallet, bag etc

Market promoter price

Channel of market promoter

Direct selling to market promoter

Technical information and design from market promoter

Different design, easy to use, specific use

Pleasing design, new look and design

10 Poultry farming Layers and Broilers

Market price, seasonal fluctuation

Local market channel

Selling to local market

Technical and input supply from market promoter

Bird flu unaffected poultry products

Hygienic products

11 Tata-Rose flower

Fresh Market price and market promoter price

Market promoter channel

Selling to market promoter

Technical and input supply from market promoter

Fresh, uniform size

Fresh and uniform size, good packaging

12 Tailoring Children clothes

Market promoter price and local market price

Shop to shop selling at local market and channel of market promoter

Selling to local cloth shop and selling to market promoter

Technical input from market promoter

Design, fit size Clean and well knitted

Some of the important insights during 7 Ps as specified in above table can be further assessed as:

For all the product market promoter has built his own channel and entrepreneur at VDC level can be linked through this channel

Market promoters and market price of the product depends on the season of the product (mainly in fresh products like strawberry, asparagus etc.)

Most of the market promoters are eager to supply technical information to the entrepreneur for development of the products. Few of the market promoter (as in organic vegetable, asparagus. mushroom etc. are interested to provide input supplies to the entrepreneurs.

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5.5. Product profile

The product profile is prepared based on the discussions with the market actors and market promoters and other secondary sources of information. Other details assumptions are as follows:

Market price is obtained from the market actors and market promoters Quantity estimated is approximately provided in average figure and mostly from

the discussion with the market actors Detail contact address of all visited market actors and market promoters are

mentioned in the given annex Organic products are provided in a separate chapter Not all products mentioned are produced in a season. Certain product especially

organic products need more than one year of production cycle. The entrepreneur thus has to be work with a multiple products (e.g. organic product and candle) so that they can wait for long gestation.

Wild collection is for product like Chest Nut, Lapsi, Allo Nettle Fibre, and Tibetan Carpet.

• Chest nut – Detailed analysis of resources is not available for chest nut • Lapsi plantation can be done • Allo nettle fibre resources are available in small quantities in the target

VDCs. Allo thread need to be bought from Sankhuwasabha6 district and entrepreneurs should be trained in product making. Allo plantation could be started in the community forestry land.

• Wools are now dyed using chemicals but it can be naturally dye using natural ingredients.

5.5.1. Product: Candle

Market trend Market is not stable for normal candle. However, there is a demand of designer candle during festival, if it is prepared according to the preference of customers.

Market Actors

Normal Candle – Shop to shop marketing

Designer Candle- Mahaguthi especially in Christmas time

Mahaguthi for designer Candle

Price

Normal Candle – Rs 5 to Rs. 100 depending on size

Designer Candle – Price depends on its size, design and wrapping

6 Eastern Hilly District of Nepal as main production of Nettle Fibre

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Volume

It is difficult to estimate actual volume of consumption and mostly purchased during major festival like Dashain7, Tihar8, and Christmas.

Season

Normal candle is high in demand during the festival (Dashain and Tihar)

During the load shedding period

Designer candle is high in demand during Christmas and New Year

Quality Aspects

Designer candle- New design according to year and function and usage

Competition

Domestic producers

Customer

For designed candle: General people who celebrates Christmas and birthday parties

Normal candle: General people

Value addition possibilities

New design and attractive packaging , Use of quality wax and colour

Product Benefit

Normal Candle for lightening and designer candle for design purpose

Potential Market Promoter

Mahaguthi and WEAN

Feedback of market actors on product

Quality – Quality of Wax, finishing in design

Quantity – N/A

Availability – Mahaguthi and major Department Stores

Price Packaging – N/A

Potential Partners

Village Development Committee

Training for candle making

Fund for Dalit and Janajati (secluded caste in Nepal) for enterprise development

Department of Cottage and Small Industry

Training provider

Technical know-how

Linkages with financial services providers

Customer Feedback

Price – N.A

Quality – Clear

Usage – Some are less quality

7 Festival of Nepalese citizen for 10 days in the month of September 8 Festival of Nepalese for 5 days in the month of September- October

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Product Improvement – No need extra stand, long lasting, smokeless

5.5.2. Product: Tibetan Incense and Religious Incense

Market trend Products have tremendous possibilities as religious market mainly for Buddhist religion. Presently this is catered by religious incense made in various parts of Nepal like Taplejung (Eastern Hilly district of Nepal, adjacent to Indo- Chinese border), Rasuwa (Central Hilly district of Nepal adjacent to Chinese border and 200 km from Kathmandu) and other places.

Market Actors

Local market for religious incense

Kathmandu market for Tibetan incense

Local traders for religious incense

Mahaguthi for Tibetan incense

Price

Religious Incense: Rs. 5 per 20 piece

Tibetan Incense: Rs. 50-100 for 20 pieces

Season

Religious incense demand in festive time throughout year, religious events

Tibetan incense throughout the year

Quality Aspects

Easy burning, Similar size of stick, Use of natural scent, Proper mixing for making incense – Kaulo (Persea sps), dhupi ( Juniper/ Thuja spectra), bamboo stick etc. , Natural scent Vs artificial

Note: Kaulo (Persea sps), Dhupi (Juniper/ Thuja spectra), Bamboo stick and other raw materials are easily available in the Kathmandu market.

Competition

High competition with the Indian incense

Present Suppliers

From hilly districts of Nepal

Customer

Religious and general people

Value addition Possibilities

Innovative wrapping and use of natural perfume

Product benefit Used in Meditation and perfume

Potential Market Promoter

Mahaguthi

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Feedback of market actors on product

Quality – Similar scent

Quantity- Small packages

Availability- N.A

Price Packaging – N.A

Potential Partners

Mahaguthi

Customer Feedback

Price – has to be competed with Indian incense

Quality – Need natural fragrance

Usage- promoted as wider use of normal incense stick

Product Improvement- N.A

5.5.3. Product: Rainbow Trout (Oncorhynchus mykiss)

Market trend Rainbow Trout demand has been increasing due to awareness in Nepal through various sources but due to price factor, it is mostly exported and limited only to expatriate community. The initiative in Nuwakot and wide spread of information among customer has seen increasing demand for Rainbow Trout. There are three sales outlets of Rainbow trout located in Jawalakhel, Balaju, and Maharajgunj with also available in local restaurant in Kakani area that caters visited customers. Annual market consumption of Rainbow Trout in the Kathmandu market is 30-40 Tons.

Market Actors

Potential Promoter

Rainbow Trout Fish Association, Sales outlet of Rainbow Trout , Agro Business Centre for Research and Development

Price

Rs. 600- 800 per kg

Season

Annual, depends on water source

Quality

Quality Aspects

Continuous flow of water in pond , perennial source

Constraints on ownership of water source

Lack of input supply from hatchery

Temperature maintain at 10 to 15 Degree Celsius

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Close supervision ( day – night)

Transportation issues

o Vacuum packaging

o Refrigeration

o Dressing

Fresh sales of Rainbow Trout through restaurant near farm

High cost of feed Rs. 150-200 per kg of feed due to absence of group input purchasing

Hotel reluctant to put in menu because of lack of trust for continuous supply

Major :Average Size 200-250 gm

Competition

Competition from Sindhupalchowk with low price

Present Suppliers

Nepal Trout Fish House, Restaurant in Kakani area

Customer

Hotels, Restaurants and general people

Value addition Possibilities

Vacuum pack and frozen

product Benefit Excellent source of niacin and vitamin B12, Good source of pantothelic acid and selenium

Potential Market Promoter

Rainbow Trout Fish Association, Agro Business Centre for Research and Development

Feedback of market actors on product

Quality – Fresh

Quantity- Supply less and not uniform

Availability- N.A

Price Packaging – Vacuum packed, long lasting needed

Potential Partners

AEC/ FNCCI , OVOP program on Nuwakot

Fishery development Department

Customer Feedback

Price – Higher compared to other, so not using in regular basis

Quality- Not long lasting

Usage- Not in regular use, for especial occasion only

Product Improvement – Packaging

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5.5.4. Product: Lapsi Products (Choerospondias axillaries)

Market Trend

Lapsi (Burglar Sweet) is an underutilized fruit that found naturally in Nepal and particularly in the Kathmandu valley and its surrounding areas. It is sour in taste but having full contents of Vitamin C. Different cuisine could be made from this fruits. At present, different types of Lapsi candy has been found in the markets and its demand is increasing in the markets. The tourists from different countries visiting Nepal have had also a nice taste of candy and they have appreciated its taste. This information has been given by different small candy retailers and the supermarkets

Market Actors

Vegetable Market for Lapsi candy

Oriental enterprise for Lapsi powder

Grihani Udyog for Lapsi Pickle

Price

Lapsi per kg.: Rs. 18-25

Lapsi dust per kg: Rs. 160

Lapsi Pickle: Rs. 45-60

Lapsi Candy per kg.: Rs. 90-95

Season

November to January

Quality

Hygienic and healthy, Attractive packaging

Competition

Competition from home made Lapsi variety from Bhaktapur area.

Present Suppliers

Bhaktapur main supplier

Customer

General people to processing companies

Value addition possibilities

Pickles, Candy, Powder

product Benefit Vitamin C

Potential Market Promoter

Ram Krishna ( Kalimati Vegetable Market), Oriental Enterprise, Mahila Grihani Udyog

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Feedback of market actors on product

Quality – N.A

Quantity- N.A

Availability- N.A

Price Packaging – Better packaging and hygiene for value added products

Potential Partners

AEC/ FNCCI – OVOP program on Lapsi in Bhaktapur

Customer Feedback Price – N.A

Quality – Hygiene and health issues in value added products

Usage- Usage limited and less knowledge on its utilization

Product Improvement – Branding of value added products needed

5.5.5. Product: Asparagus (Asparagus Officinalis)

Market Trend

Market trend of the product is increasing and being used to for general people too. There has been increase awareness of medicinal value of Asparagus and is being sold in high prices in vegetable market.

Market Actors Kalimati Market, Organic Village, Lotus Organic

Price Range from Rs. 100 to Rs. 200 Per kg.

Season April to September

Volume 5,000 to 6,000 Kg annual consumption in the Kathmandu Valley

Quality Aspects Clean, Standard marketable size 1 fit to 2 fit long and tied in bundle

Competition Local vegetable shops and farmers

Present Suppliers Farmers from Bhaktapur and Kathmandu

Customer Individual person and Hotels

Value addition possibilities

Grading and packaging

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Product benefit

Source of vitamin K

Prevent from birth defects

Prevent from heart diseases

Helps menstrual clamps

Potential Market Promoter

Lotus land organic farming, Ramkrishan Duwa – Kalimati vegetable market

Feedback of market actors on product

Quality – N/A

Quantity – N/A

Availability – Departmental store and vegetable shops

Price Packaging –N/A

Potential Partners

District Agriculture Development Office

Directorate of industrial entomology development office

Customer Feedback

Price – N/A

Quality – N/A

Usage – Soup and vegetable

Product Improvement – N/A

5.5.6. Product: Mushroom (White button and Oyster)

Market Trend

Public are now aware of the Mushroom and is reaching is consumed by publics and available in all hotels and restaurants. Private entrepreneurs are directly working with the farmers group for its promotion in Kakani areas during off-season and in during the season they are producing individually in Thecho.

Market Actors Kalimati Market, Syambhu market ,Local business in Thecho, Grameen Agro Enterprise

Price

Round Mushroom – Rs. 200 to 350 per kg

Flat Mushroom – Rs. 50 to 150 per kg

Volume

150,000 to 200,000 Kg. consumption per annum (Source: based in Kalimati vegetable market traders)

Quality Aspects Plastic Pack in ½ kg pack

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Uniform Size

Competition

Mushroom business is carried out throughout Nepal and competition exists as product from various parts of Nepal comes to Kathmandu

Present Suppliers Mainly Balkhu and Chapagaun, different parts of Nepal

Customer General people and Hotels

Value addition possibilities

Packaging (1/2 kg. each) and freshness

product Benefit Source of protein, vitamin B and minerals

Source of antibacterial substances

Potential Market Promoters

Grameen Agro Enterprise, Ram Krishna (Kalimati)

Feedback of market actors on product

Quality – N/A

Quantity – No add water

Availability – N/A

Price Packaging – N/A

Potential Partners District Agriculture Development Office , Etymology department

Technical information on farming

Disease control and management

Customer Feedback

Price – N/A

Quality – N/A

Usage – Vegetable and soup

Product Improvement – N/A

5.5.7. Product: Fibre based Products - Allo (Girardinia diversifolia)

Market trend Allo Nettle Fibre is contributing 0.18% in Handicraft export (2064/065). Major export destination is USA for Allo products. Currently the market demand for Allo Fibre has increased due to its usage in carpet weaving. Recent study shows that only 32% of collection was possible out of total potential stocks. There has been an increase in number of market actors in Allo products and has seen increase in usage in domestic and international market.

Market Actors Ninam Ridum Bio Handicraft Centre, Nepal Knot Craft, Home net

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Price

Nettle fibre ( Allo ):

Cloth per meter NRs. 550-1700, Fur (fibre) per kg. NRs. 70-120 and Thread per kg. NRs. 300-1500

Banana Fibre:

Thread per kg. NRs. 400-550, Cloth per kg. NRs. 350-400 ( cotton and wool mix 50-50% in banana fibre )

Volume In the selected VDCs Allo production is very minimum. The product ‘Allo’ can be made by purchasing threads from other sources. After discussion with market promoters, they have suggested that 15 beneficiary entrepreneurs can be linked with the market promoters.

Season Nettle fibre: Nov-Feb.

Banana fibre: All month

Quality Aspects Attractive, well finishing and new design

The fibre generated out of the stump and leaves do not produce clean fibre. Such raw fibre is mostly associated with the non-fibrous materials stinging along the fibrous materials. The product made from these raw materials lack quality on uniformity and clean products.

Competition The competition for nettle fibre is mostly from Sankhuwasabha. There are Allo Clubs (informal group of Allo nettle fibre entrepreneurs), which manufacture Allo products. Market traders in the Kathmandu valley have good contacts with the Sankhuwasabha based Allo club/groups and buy products from them directly.

The banana fibre products are coming from Kawasoti (Nawalparasi) and Sun sari. Banana fibre based products are new to the market and need more customer orientation and advertising for raising the benefits of the products.

Present Suppliers

Presently the supply of Allo is from mid hills of Nepal and Sankhuwasabha is the main source. Nearby Kathmandu, Ramechhap also has started Allo production.

Customer

Allo based products are mostly exported in the international market with minimum demand in the domestic market. The bags produced by Allo fibre are used for training and seminars.

Value addition possibilities

Product development- Bags, purse, clothes etc.

Benefit of the product to the customers

Non allergic to body, maintain temperature, good and unique design

Potential Market Promoter

Nidhan Ridhum, Home net

Feedback of market actors on product

Quality – Quality of thread not uniform

Quantity- N.A

Availability- N.A

Price Packaging – Value added products has less domestic market

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Potential Partners Home Net Nepal, SABAH Project

Customer Feedback

Price – High price compared to other fabrics

Quality – Finishing not good

Usage- Used for Main occasion, not regular product

Product Improvement – Product variety and increase regular use

5.5.8. Product: Strawberry (Fragaria ananassa)

Market Strawberry in Kakani/Okharpauwa area was introduced by Japan Agriculture In- service Training Institute (JAITI) Nepal and initially it had fetched higher price in the market. The production of strawberry by the farmers in those areas is in increasing trend. As per the discussions with the market traders, there is still a gap in the market in terms of adequate supply.

Market Actors

Road side sellers in Jamal, New Road, Thamel market, Oriental enterprise, Strawberry house Lazimpat, Agro Forestry Promotion Centre, Navajivan Cooperative, Agro Business Centre for Research and Development, Dharma Das ( Juice and Jam processors)

Price

A Grade: Rs. 200 – 300 per kg

B Grade: Rs. 150-200 per kg

C Grade: Rs. 70-120 per kg

D Grade Rs. 30-40 per kg

Rs. 300 per kg for export quality

Season October to June

Quality Aspects Well plastic pack, hygienic, large size and attractive

Present Suppliers Farmers from Okharpauwa and Kakani

Customer Hotel, Restaurant, General Public

Value addition possibilities

Strawberry Juice and Jam, and Strawberry Wine

Product benefit

Strawberries taste great, but they also have high levels of vitamin C and are a source for antioxidants.

Potential Market Promoter

Oriental enterprise, Agro Forestry Promotion Centre, Navajivan Cooperative, Agro Business Centre for Research and Development

Feedback of market actors on product

Quality – Lack uniform size

Quantity- Unable to meet market demand in season and no alternative way for off season

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supply

Availability- N.A

Price Packaging – Cost is getting lower

Potential Partners

District Agriculture Department

Technical knowledge on strawberry farming

Disease control

Farm management

Linkages with farmers groups

Customer Feedback

Price - N.A

Quality – unsafe packaging

Usage- N.A

Product Improvement – New variety, new usage

5.5.9. Product profile: Poultry Farming

Market Trend

Poultry market is ever increasing market due to increase in population in Kathmandu. The major set back for poultry is danger of spreading of " Bird Flu" at which time the demand of poultry product is lessened and even challenge entrepreneurs for destroying poultry if infected. There is a high demand during festival season and marriage calendar.

Market Actors Balkhu, Tukucha, local market, hotels and restaurant, Valley Poultry Industries

Price Chicken per kg. NRs. 350 ( marketable )

Season April to June and September to November

Quality Aspects Healthy, hygienic and clean

Competition Inter competition between poultry farmers

Present Suppliers Entrepreneurs having poultry farm in outskirt of Kathmandu, from Chitwan and other parts of Nepal

Customer

General people

Value addition possibilities

Hygiene, improved breeds

Benefit of the product to the customers

Protein, nutrition

Potential Market Valley Poultry Industries

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Promoter

Feedback of market actors on product

Quality –Hygiene and disease free

Quantity- N.A

Availability- N.A

Price Packaging – Hygienically packed

Potential Partners

District livestock Support office

Technical information on poultry farming

Disease control

Linkages with DLSO groups

Customer Feedback Price – N.A

Quality – Unable to know hygienic or not

Usage- Regular food

Product Improvement – Increase hygiene production and processing

5.5.10. Product profile: Floriculture – Tata Rose (Rosaceae)

Market Trend

Floriculture market is in increasing trend but important factor has been timely production of floriculture product to get market. Still Indian share in floriculture market is more but Nepalese farmers are more interested now in floriculture. The market channel is systemized with involvement of wholesalers who act as bridge between producers and retail outlet.

Market Actors

Market Outlet Kamaladi, Tripureshwor, Standard Nursery, United Flora and other nurseries, wholesaler, Agro Forestry Promotion Centre, Grameen Agro Enterprise Centre, Agro Business Centre for Research and Development

Tata-Rose- 20,000 pieces

Price Tata-Rose: Rs. 5 per piece

Season June to November

Quality Aspects Raw Flower, Continuous supply

Competition Competition with other farmers, Indian products

Present Suppliers

Farmers in vicinity of KTM, other district of Nepal, India

Customer Young people, present and bouquet

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Value addition possibilities

Bouquet

Benefit of the product to the customers

Gift item

Potential Market Promoter

Standard Nursery, Agro Forestry Promotion Centre, Grameen Agro Enterprise Centre, Agro Business Centre for Research and Development

Feedback of market actors on product

Quality – Fresh, exact size, proper wrapping

Quantity- Time based demand

Availability- N.A

Price Packaging – Season based pricing, proper packaging for less damage

Potential Partners Floriculture Association of Nepal

Technical knowledge

Technical training and market information

Exposure visit and exhibition

Customer Feedback Price - Fluctuation

Quality – Varies

Usage- Marriage function, party , Gift, Valentine Day

Product Improvement: Different variety, colour combination

5.5.11. Product: Tailoring - Newborn baby clothes

Market Trend

Presently there is a high demand of newborn baby clothes in Kathmandu market. The market is based on linkages to hospitals and nursing home. Nursing home and hospitals has contract with tailoring business. There is a hygienic issue in clothes as it for children, which is looked upon by the market actors.

Market Actors Prasuti Griha, Hospitals , Mahila Grihani Udyog, Departmental stores

Price Depends on product

Season All season

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Quality Aspects Threading, design, quality of clothes (soft and anti allergic)

Competition

newborn baby cloth manufacturers

imported Chinese

Indian clothes

Present Suppliers Tailoring entrepreneurs in Kathmandu, Traders importing Indian and Chinese ready made clothes

Customer Parents of new born baby

Value addition possibilities

Different design, children friendly fabrics

Potential Market Promoter

Mahila Grihani Samaj

Feedback of market actors on product

Quality – Lack of awareness on children friendly materials

Quantity- N.A

Availability- N.A

Price Packaging – Good packaging instead of road side selling

Potential Partners

Department of cottage and small industries

Training on product making

Information on design and product development

Customer Feedback Price – N.A

Quality – Knitting, threading proper, clothes quality

Usage- for children cloth

Product Improvement – Natural design, children friendly clothes

5.5.12. Product e: Tibetan Carpet

Market Trend

Carpet industry has been one of major export handicraft in Nepal and its market mechanism has been well established. Presently there has been decrease in business of large size carpet but increasing demand for 100 knot 3*4 meter (Two-piece carpet) in Lhasa as well as domestic market. There are specific association that works for advocating rights of weavers, exporters and traders in carpet industry. Present wage rate of carpet is Rs. 2,000 per meter for 100 Knot size. Generally, weavers get Rs. 2000 per meter of carpet; contractor gets Rs. 400-450 per meter and trader and exporter sale the product in different price range.

Market Actors

Exporters: Tibet Carpet, Formation Carpet

Contractors: Mr. Sunil Lama and Ms.Sharmila

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Dyeing units, Wool suppliers, weavers

Price

For 100 knot per meter

Wage for weaver – Rs 2000

Contractor selling price- Rs. 4500

Exporter and Retailer- Rs. 4700 above

Season All season

Quality Aspects Threading, design, colour combination, knitting

Competition Large number of contractors and exporter present, presently high supply and less demand

Present Suppliers

Exporter has own production sites and some outsource product making to contractors. Contractor works will weavers in vicinity of Kathmandu (e.g. Thecho and Sainbu 100 weavers are contracted by Mr. Sunil Lama and Ms. Sharmila)

Customer Export market, domestic market, Lhasa and Chinese market

Value addition possibilities

Unique design, variety of products/ new product development

Product benefits

Used as decorative item, Used as furnishing item, soft and easy

Potential Market Promoter

Mr. Sunil Lama and Ms. Sharmila in Thecho

Feedback of market actors on product

Quality – Skill is needed for perfection in product making

Quantity- Irregular demand for product, single person can make only 2 meter in one month

Availability- N.A

Price Packaging – N.A

Potential Partners

Carpet Association of Nepal

Information about market

Information on design and new product development

Customer Feedback Price – Costlier compared to other furnishing products

Quality – Unknown in quality parameters

Usage- for Furnishing

Product Improvement – Natural design, product variation

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5.5.13. Product: KIWI Fruit (Actinidia chinenesis and Actinidia deliciosa)

Market trend KIWI is highly demand product with yearly market demand of 30,000 kg in Nepal. The present supply from Nepal is 2,000 kg and rest comes from New Zealand and Australia in the market. KIWI production is growing due to the initiative taken from the ICIMOD, Love Green Nepal and JAITI.

Market Actors

Lotus Organic Farm, Organic Village , Love green Nepal, JAITI Nepal Farming, Fresh Himalaya Agro-products, Dharmadash Amatya - Panauti

Price

Grade A – Rs. 300 / kg

Grade B – Rs. 250 / kg

Australian: Rs. 550 / kg

Volume

Annual consumption of KIWI in Nepal is 25,000 to 30,000 Kg., but the total production in Nepal is less than 2,000 Kg. per annum.

Production Season

January, February, March and April

Quality

Freshness in product, Grading, Bigger size and Uniform size

Competition

Quality products available from the international Markets (New Zealand and Australia)

Present Suppliers

Farmer's affiliated with ICIMOD Research from Godawari

Love green Nepal from Makwanpur

Karma Bansa Lama from Kakani

Customer Mainly Hotels and Restaurants

Department stores

Food shop

Value addition possibilities

Proper Grading and Packaging in a Transparent Container

Benefit of the product to the customers

Source of Vitamin C

Skin care

Potential Market Promoter

Organic village

Fresh Himalaya Agro-products

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Dharmadash Amatya – Panauti

Love Green Nepal/ Prakrit

Lotus Organic Farm

Feedback from market actors

Quality – Not uniform size, sour test than sweet

Quantity – Not enough quantity is available

Availability – Department Stores and Fruit Shops

Price- Competitive with international products

Packaging – Should keep KIWI of equal size in a pack

Potential Partners

District Agriculture Development Office and ICIMOD

Technical training

Subsidy in seedling and saplings

Linkages with DADO farmers groups

ICIMOD

Knowledge brokerage on farming practices and research carried out in Godavari

Customer Feedback

Price – No complain

Quality – Sour than sweet

Usage - Salad

Product Improvement – Reduce souring taste

5.5.14. Product: Ground Apple (Polymnia sonchifolia)

Market trend Product is new in the market and most of the people do not know about its use and farming technology. However, at present its market is growing particularly targeting to Hotels, Restaurants and other food outlets.

Market Actors Organic Village, Lotus Organic Farm, Ranamukteshwore, New road, Soaltee market centres

Price Rs. 90 per kg

Volume It is just introduced in the market, so it is difficult to estimate volume of product been supplied and consumed.

Production Season

Plantation- April/May

Harvesting – August/September

Marketing- August/September

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Quality Timely delivery

Continuous supply

Cleaning, Grading and Fresh

Present Suppliers Lotus Land organic Farming in Kathmandu and Mahila of Kakani

Customer Hotels, Department Stores and Vegetable Shops

Value addition Possibilities

Grading, Packaging and storing

Benefit of the product to the customers

An anti cancer diet

Source of vitamin C

High carbohydrate diet

Good for diabetes

Potential Market Promoters

Organic village and Lotus organic farming

Feedback from market actors

Quality – Grading is not done

Quantity – Very less

Availability – Farming and marketing of this product is concentrated in specific place/venue

Price Packaging – No complain

Potential Partners

District Agriculture Development Office

Technical training

Subsidy in seedling and saplings

Linkages with DADO farmers groups

Customer Feedback

Price – N/A

Quality – No complain

Usage – Chips and salad

Product Improvement – N/A

5.5.15. Product: Japanese Sweet Potato (Ipomoea batatas)

Market trend Normally people consume this product only during Nepali festival (Maghesakranti) time, so its demand is seasonal.

Market Actors Organic Village, Lotus Organic, Ranamukteshwore market

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Price Rs. 40-50 per kg

Production Season

May and June – Plantation

September and October - Harvesting

Quality Uniform size

Regular Supply

Present Suppliers Lotus land organic farm

Customer Hotels and Department stores

Value addition Possibilities

Quality improvement

Organic production

Grading, Storing and Packaging

Benefit of the product

Source of calcium, potassium and vitamin ‘C’ and ‘A’

It can prevent from cancer

Potential Market Promoters

Lotus land organic farming and Organic Village

Feedback from market actors

Quality – N/A

Quantity - Less

Availability – Department Store

Price Packaging – N/A

Potential Partners

District Agriculture Development Office

Technical training

Subsidy in seedling and saplings

Linkages with DADO farmers groups

Customer Feedback

Price – N/A

Quality – N/A

Usage – Chips and Salad

Product Improvement – N/A

5.5.16. Product: Chest Nuts (Castanea dentate)

Market trend It is consumed mainly during Nepali grand festival ‘Tihar’ by the Nepalese people.

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Market Actors Oriental Enterprise, Spice Shop in Makkhan, and Lotus Organic

Price Rs. 60 per kg

Season October

Volume Up to 7,000 Kgs. per annum

Quality Aspects

Must be grade A

Well dried

Present Suppliers Village based small traders and individual people

Customer Spices shop

Value addition possibilities

Grading

Semi processing

Benefit of the product to the customers

Good for body building

Good for teeth

Fever and cough control

Potential Market Promoters

Oriental Enterprise and Lotus Organic

Feedback of market actors on product

Quality – Middle grade is good

Quantity – 7 tones per year, lack of uniform supply

Availability – Mainly in festive time

Price Packaging – N.A

Potential Partners

Department of forest

Technical knowledge

Legal procedures

Customer Feedback

Price – N/A

Quality – Grading, dried

Usage –N.A

Product Improvement – N/A

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5.5.17. Product: Chukandar (Beta vulgaris)

Market trend Recently the market of this product has been increasing because of change of food habit of the people (people prefer to have salad in their meal or dinner).

Market Actors

Organic Village, Summit Hotel, Ranamukteshwore Market, Ram Krishna Duwa, Kalimati vegetable market

Price Rs.15 to Rs.30 Per Kg

Quality

Uniform Size

Regular Supply

Volume 15,000 to 20,000 Kg consumption in Nepal

Season September to January

Quality Aspects Size of a product should be such that 5 to 6 pieces of products can weight about a kilogram.

Competition Indian product is dominant in market

Present Suppliers Farmers in Thimi and Kathmandu

Customer Hotels and vegetable retail shops

Value addition possibilities

Cleaning, Grading and organic

Benefit of the product to the customers

Juice from its root is one of the most valuable juices for the liver and gall bladder

Root is rich in iron and helps in the generation of red blood cells Amaenia

Raw beetroot is prescribed in cancer as it has a tumour-inhibiting component

Potential Market Promoter

Organic village ,Ram Krishna (Kalimati) , Lotus Organic

Feedback of market actors on product

Quality – 5 to 6 Piece per Kg.

Quantity – N/A

Availability – Departmental stores, vegetable markets

Price Packaging – N/A

Potential Partners

District Agriculture Development Office

Technical training

Subsidy in seedling and saplings

Linkages with DADO farmers groups

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Customer Feedback Price – N/A

Quality – Clean and big size

Usage – Salad

Product Improvement – N/A

Note: Details of sculpture business is not provided in this report due to difficult to gather information as the trader was not ready to share information with the team.

5.6. Value addition and market parameters

a. Value addition possibilities: The value addition in the agriculture products and services has been a major challenge for any entrepreneurs for their existence. The table is listed with the raw agriculture products and services with the value added products/services observed in the market. Value addition could be done by simple modification in the current products or creating completely new products depending upon the entrepreneur strength. Product diversification is modification of a current product into different forms that serves the consumers need. The product diversification possibilities of the selected products are provided below:

S.N. Name Diversified product available in the Market 1 Asparagus Fresh Asparagus, Grading, Asparagus soup (Knoor's Product), Herbal

and medicinal uses 2 Strawberry Fresh, Graded, Juice, Jam, Wine

3 Organic Vegetable Fresh, Graded, soup, powdered

4 Candle Normal, Designer

5 Tibetan Incense Incense stick, Religious, Essential oil mix

6 Rainbow Trout Fresh, Cold stored

7 Lapsi (Burglar Sweet) Fresh, Candy, Pickles, Seat cover

8 Mushroom ( White Button and Oyster)

Fresh, Dried, Paste, Soup

9 Fibre Products Nettle fibre and banana fibre product- fibre, Thread, Cloth, Purse, Bag

10 Poultry farming Boiler and layers, sausage, Cold packed

11 Tata-Rose flower Fresh, graded, essential oil

12 Tailoring Children cloth, designer cloth, Men and women clothing, Boutique

b. Product Parameters: The four product parameters (product design, product price, delivery mechanism and embedded services) have been tabulated after discussion with the study team, BSC team and market actors. These parameters were most relevant for partnership between women entrepreneurs and market promoter as provided in the table below. The definition embedded services and delivery mechanism are described below. Embedded services could be explained with an example i.e., Buyers providing market information while purchasing products or input providers providing other technical information while purchasing inputs are an example of how embedded services are in practice.

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Delivery Mechanism is the channel from which product and services reach the customers. Some of the examples are direct marketing, through distributors, wholesalers and retailers, and through the internet.

Table 12: Product parameters

Product Product Design Product Price Delivery Mechanism Embedded Services

Tata- Rose Cut flower of Tata rose Buy in prevailing market price

Presently being supplied from own farm and from farmers who has taken saplings from standard nursery

Technical information for flower production

Organic Vegetable (KIWI, Ground Apple, Sweet Potato, Chest Nut, Chukandar)

Fresh vegetables Buying in prevailing market price

Presently being supplied from own farm

Technical information on organic farming

Asparagus, Tata-Rose, Strawberry

Fresh Buying in prevailing market price

Have own lease land in Jhapa and own land in Kakani

Technical information , Land allocation, 50% payment for input delivery

KIWI Fresh Buying in prevailing market price and selling through Prakrit store

Presently supplied from Tistung and Kavre

Technical information on production

Allo Nettle Allo products - bags, purse, clothes etc

Buying in prevailing market price

Presently supplied from Sankhuwasabha

Technical skills on product making

Incense stick and Candle

Tibetan Incense Stick, Designer Candle

Prevailing market price

Presently supplied from entrepreneurs inside Kathmandu

product design, time for making products

Strawberry, Organic Vegetable

Strawberry Juice and Jam , Fresh Organic Vegetable

Deducing 10% to market price

Supplied from cooperative members

Provides loan service to members, marketing of member products

Strawberry, Bulgar Sweet (Lapsi) powder

Strawberry Juice and Jam, Lapsi Powder

Buying in prevailing market price

Supplied from own farm in Kakani and farmers

Linkages to processors, Export market

Asparagus, Mushroom Fresh Prevailing market price

Supplied from producer from different parts of country

Market information and time to produce

Mushroom, planning for floriculture

Fresh Prevailing market price

Supplied from own product site and farmers near production sites

Provides training and input to farmers near to their production

Trout, Strawberry and Roses

Fresh Prevailing market price

Supplied from own research site and farmers near research sites

Planning to provide 50% in instalment for saplings and provide marketing linkages

Children Clothes, Lapsi Pickles

Children clothes, Lapsi pickles

product based price, around 15% less than market price

Own manufacturing unit Technical information on clothes making, design, process of pickle making

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Allo Nettle, Dye Allo fibre and products Prevailing market price

Supplied by Home based workers (Home net Nepal members)

Membership based approach to provide business services and also social security services

Poultry Fresh Prevailing market price

own production site and also from farmers who take feed from them

Provide information on feed, poultry raising

Carpet Contact weaving as per demand of market through contractors

Govt. price 2000 per meter for 100 knot

100 weavers in Thecho and Sainbu

Technical training, advance for work

c. Quality requirements for partnership: Further parameter is identified specific to the product related business services and constraints and opportunities are identified as given below. The parameters analyzed are Product, Supply/ volume, Transfer Market Information, Information of producers Groups, Transfer of Technology and Technical Information. This information is based on the present parameters of Market promoters.

Table 13: Quality requirements for partnership Product/ Services

Supply/ Volume Transfer Market Information

Info of producers Group

Transfer of Technology

Technical Information

Tata-rose Depends on Season and timing, ready to discuss with farmers on planning for timely production

Over telephone, market information and technical details

Presently working with groups in Sankhu

Only information on technology required

Technical information embedded with input selling

Organic Vegetable (KIWI, Ground Apple, Sweet Potato, Chest Nut, Chukandar)

1000 kg of organic vegetable in the market

Over telephone, market information and technical details

Presently doing on his own nursery

Only information on technology required

Technical information embedded with input selling

Asparagus, Tata-Rose, Strawberry

Depends on Season and timing, ready to discuss with farmers on planning for timely production

Over telephone, market information and technical details

Presently working in groups in Kakani and Jhapa

Only information on technology required

Land allocation for farming and technical information in Kakani

KIWI Selling 1500 kg but market demand of 30000 kg being supplied from import from Australia and New Zealand

Through telephone

Presently working with groups in Tistung and Kavre

Only information on technology required

Technical information production

Allo nettle Depends on export demand, ready to discuss with entrepreneurs for product making as per export demand

Through telephone

Presently working in Sankhuwasabha group

Linkages to technology providers

knitting, clothes making, product making

Incense stick and Candle

Mahaguthi preparing strategies for incense and candle production and ready for discussion on production volume

Telephone information market price

Presently working with groups in Kathmandu and outside and also

Able to provide technology cost for small amount

Technical information on cost reduction, production process

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own

Strawberry, Organic Vegetable

Marketing product from 150 share members

Information from market actors, dept store, hotels, new road, Jamal

market linkages of products from members

Lack of finance for cooperative, Projects has supported on trainings

Through cooperative on marketing

Strawberry, Lapsi powder

Gap in product supply Through telephone

Have own farm in Kakani, Exporting to Japan( strawberry)

Can come as private sector investment in technology

Specialised in market information only

Asparagus, Mushroom

Gap in product supply Through telephone

Traders bring products

Time factor , off-season supply

N.A

Mushroom, planning for floriculture

Buyback at prevailing market price for production from farmers

Through own production site

working in Kakani and Bhaktapur area

Provides technology on sharing basis

production system

Trout, Strawberry and Roses

Initial research stage will plan with farmers for production volume

Information from own production farm, linkages with United Flora Tripureshwor

Working with farmers in Kakani as research

Information on transfer of technology

Has own tissue culture lab and can provide technical information on production

Children Clothes, Lapsi Pickles

Gap in supply for department stores and ready to discuss with entrepreneurs for tailoring business

Information through telephone

Presently working in own factory with women

Transfer of information of technology only

Technical information on production

Allo Nettle, Dye Presently carrying out market research for Allo product and obtain information and plan for supply chain mechanism

Through members and Home net office, going to carryout market research for Allo

Home based workers more than 24000 in Nepal , producing natural resource based products

Provides technology to member, to become member it takes six months

Information on knitting and product making

Poultry Gap in market demand Through telephone or while supplying feed and chicks

Large network of more than 10000, supplies feed and chicks to them

Linkage to technology transfer

Provides training through poultry specialist of DADO

Carpet Monthly 2 meters by one women

Information of demand through contractors

Large number of weavers in vicinity of Kathmandu, own production

Linkages to technology providers

Provide weaving training

d. Value addition, its constraints, delivery mechanism and initial activities: The value addition possibilities are linked to various constraints and activities for carrying out value addition. This is presented below after wide discussion with market promoters.

Table 14: Value addition of products

Product/ Services Value Addition possibilities

Initial Cost for value addition

Constraints Delivery Mechanism

Initial Activities

Tata-Rose Timely production N.A Farmers slowly being able to

Wrap in newspaper and

Discussion with producer and

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produce flower according to time factors , major constraints in producing according to time

send to Bansbari nursery

Standard Nursery for joint planning for production

Organic Vegetable (KIWI, Ground Apple, Sweet Potato, Chest Nut, Chukandar)

Timely production and increase productivity

Though usage of organic fertilizer and systematic production

Regular supply, constraints in organic certification

packaging and supply to Organic Market or Bhaktapur nursery

Soil testing, identification of organic farm and discussion between Lotus and farmers

Asparagus, Tata-rose, Strawberry

New variety of production

N.A Regular supply, new product development (strawberry presently is getting low resistance to diseases)

Contact point Ang Nima Sherpa in Kakani for product delivery or through own farm land in Kakani

Discussion between producer and AFPC for joint planning

KIWI Packaging Rs. 2 per kg packaging cost

Regular supply, continuous technical knowledge required, problem on getting saplings

Supply to market outlet - Prakrit

Discussion between producer and Love Green Nepal for joint planning

Allo nettle Allo Nettle fibre from Sankhusabha and product making in selected VDCs

20,000 per entrepreneurs for equipment for product development

Quality product, changing demand of customer for new product design, lack of proper national market

Product to be brought to Bishal Nagar factory

Arrangement for fibre buying from Ninam and producing product and selling to Ninam

Incense stick and Candle

Candle- Designer , Incense Stick Tibetan

Mould cost for candle, Ingredients cost for Tibetan incense

Quality production is difficult, market in seasonal basis only

delivery to outlet in Kupondole, Lazimpat etc

Planning of production and timing between entrepreneurs and Mahaguthi

Strawberry, Organic Vegetable

Strawberry Juice and Jam

High cost for promotion

lack of payment from hotels, lack of fund for getting to more members, Lack of skill on branding

Product delivered to cooperative office and sold through own vehicle

Grading of strawberry and linkages to market promoter for enterprise development

Strawberry, Lapsi powder

Juice and Jam from Strawberry, Lapsi Powder

Cost for processing technology

Quality of products, uniform supply

Market linkages through Makkan office and Kakani farm

Technical research on process of making juice, jam and Lapsi powder

Asparagus, Mushroom

N.A N.A Regular supply, farmers ability to produce and sale considering time factors

Collection points at VDCs or directly to Kalimati

Production time planning with Promoter

Mushroom, planning for floriculture

Improving production and productivity

N.A damage of field from mushroom production

Through own production sites

Joint planning with BSC, Grameen Agro Enterprise and farmers

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Trout, Strawberry and Roses

Improving production and productivity

N.A still to go for commercial production

To the production site and linkages with United Flora for marketing

Joint planning with farmers and ABCRD

Children Clothes, Lapsi Pickles

Children clothes, branded pickles

Tailoring equipment and home based processing for pickles

Pickle branding has to be developed, marketing of pickle is less extent

Send semi finished materials to Nepal Grihani Udyog

Joint planning for clothes making and pickle making

Allo Nettle, Dye Thread Making initially and then product development in later stage, and dye use for colouring of paper etc.

Thread making unit Rs. 20000

Difficult to go directly to product making at it need high skill

Through members Process of Home net for membership

Poultry N.A N.A 500 challa has to be done for feasibility, place has to seen as it may disturb other

Local selling or selling to Balaju outlet

Agreement between valley feed and producers

Carpet Design, natural colouring

N.A Changing from wage basis to entrepreneur is challenge as carpet channel is systematic, alternative channel has to be searched

Collection at selected points in VDCs and marketing as per demand of buyers

Strengthening home based workers to entrepreneurs, strengthening market promoter for new business opportunities

5.7. Service market

A. Child Care Centre

In the cluster A, there are huge number of carpet and other small-scale factory operating in the vicinity areas. In the carpet factory mostly women works as a labour. Women usually come to work along with her children as can be seen in the photograph. Therefore, there is a possibility of opening a childcare centres with an objective to take care of children’s mother working as a labour in the carpet factory. All carpet factory women labours shall have a union and bargain with the factory owner to contribute in establishing a child care centre and convince that the mothers shall work with a piece of mind while they are in work and the productivity shall increased. Separate fund may be generated by contributing from the owners initially and for the regular operation when the mothers shall get visible benefits some portion of operating cost shall also be born by them. It is roughly estimated that approximately NRs. One hundred thousand shall be required for initial start up for 20 children. BSC intervention: Detail feasibility of operating a child care centre

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B. Communication and stationery services

In cluster A and B in the BSC program areas there is a scope of venturing into a communication along with stationery services locating near by schools and Govt. offices. Communication services shall be with basic telephone calls as or could also be internet

facilities with few computers and printers. In few areas, many husbands and family members are migrated to other countries so these services may be very useful for those households with the facility of cheap VOIP telephone calls by using computers. Additional stationery products shall be useful for students of all households. Recharge card to input balance amount in pre paid mobile both GSM and CDMA. Investment amount required for starting such enterprise shall be estimated One Hundred Fifty Thousands. BSC intervention: Marketing training on communication technology C. Readymade Dresses In most of the BSC areas schools are available from primary level to high school grade. In all schools dress are compulsory for all students. Those schools shall undergo contract agreement with the BSC entrepreneurs to provide school dresses to their students at an affordable price range. Investment amount estimated is Three hundred thousand in purchasing equipment and machinery and other expenditure. BSC intervention: Transfer of mass production of dresses materials, tailoring skills Target customer: Education academy, large enterprises, Hospitals D. Raw inputs to small to large-scale hotel and restaurants

In Okharpauwa and Kakani areas there are many small to large-scale hotels targeting locals and outside domestic and international tourist. These hotels required daily food materials for cooking in their kitchen, which can be supplied by the vendors who have good contacts, and networking with the large scale wholesalers located in the nearby areas. These vendors can become BSC women entrepreneurs whose work shall be identifying the needs of these hotels and restaurants and their price range so that it can be supplied from the sources that satisfy their needs. Skills required are in communication, negotiation and rapport building, logistic management to reduce the per unit cost of product E. Vegetable collection centres

In most of the areas, agriculture produced by the local farmers needs to be transported to the market centre and currently it is done independently. They local farmers have to bear loss in transporting small quantity by using expensive transportation vehicle. If the market centres are established, which is owned and operated by the cooperatives then it becomes very profitable to all the local farmers in logistic supply in a bulk quantity and helps in

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marketing. In our interaction with the beneficiary, they have expressed their interest in establishing collection centre with storage facility if there are supports to them. Usually transporting independently they have to bear risk in transporting and sometime are penalize from local traffic police for unknown reasons. F. Maintenance and repair centre

Due to technological breakthrough, there is large number of electronic and mechanical appliances in the market, which is improving the lives of individuals. There is at least motorcycle, cycle, electronic appliances and other

mechanical equipments available in every household. Some repair centres even though are available but not capable to repair it. Service centres for those appliances are still not available to those households with proper knowledge and skills to repair and regular maintenance. Investment shall be on renting space and purchasing mechanical tools. BSC intervention: Training on repair and maintenance of home appliances and other mechanical equipments

5.8. Organic Market

The term ‘organic farming’ is getting popularity in recent days but it was practiced long back by local farmers with the use of natural resources. Organic agriculture offers a comprehensive response to the problems of sustainable agriculture. Worldwide there is an increasing trend for organic products. The international organic market is growing by approximately 5 billion US dollars a year. Its volume in 2007 topped 40 billion US dollars. Organic farmers receive a 15 – 20% premium for their product. Government of Nepal included Organic Agriculture in its 3 year Interim plan. In Nepal few products are organic certified such as Tea, Coffee, Spices etc. and few organic certifying agencies i.e. NASAA, Eco-Cert are working in the sector. There are other products being sold as an organic but without certification label. There are very few traders working in this sector (Lotus Organic, Organic Village, Kalimati based traders Mr. Ram Krishna Sahu). Although the organic products are popular, but in Nepal it is only purchased by the expatriate community peoples from its sales few outlets. Farmers are producing organic vegetables like Cauliflower, Radish, and Green Vegetables but without certify from the agency and so there is no as such distinction between the regular and organic products in Nepal. The organic products identified from the market survey are Kiwi, Chukundar, Chest Nut (wild), Sweet Potato and Ground Apple. Organic Certification Nepal (OCN) is the first Nepalese Organic Certification body with local initiative to promote organic movement in Nepal. OC N is a member of Multi-national Certification Bodies’ Alliance i.e. Certification Alliance (CertAll).

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5.9. Strategic options

The strategic options for BSC to work on the identified products are developed. These options are derived from analysing the views of market actors/promoters, target beneficiaries and BSC working modality.

a. Target Beneficiaries Preference: From the FGDs conducted with the BSC beneficiaries 14 products and services have been identified as a potential sub-sectors looking at the beneficiaries skill, resources and local market potentials. b. Market Promoter’s Choice: Rigorous discussions were done with the market traders to understand the market dynamics of the products. The products identified from the FGDs inputs from the selection process from the target beneficiaries have been further refined from the market actors perspective. Market promoters (from market actors) have been identified based on the possibilities of partnership and is ready to work with the BSC target beneficiaries with additional supports in providing basic knowledge inputs and market linkages. c. BSC Working Modality: BSC will work very closely with the beneficiaries for providing them capacity-building services and other necessary services to produce quality products that are sellable in the market. Other major role is facilitation between the service receiver and providers for overall benefit and promotion of the products and services. BSC shall strengthening existing BDS services and other financial service provisions from the financial institutions and from the market promoters. More importantly, partnership between with Market traders has been a crucial factor for developing strategic options. The table below describes findings from discussions with the market promoters, target beneficiaries and the study team.

Table 15: Strategic choice and relevant products

Strategic Choice Products 1. Increasing in production capacity and

introduction of improved varieties products:

Asparagus, strawberry, Organic vegetable, Bulgar Sweet (Lapsi), Mushroom, Poultry, Tailoring , Floriculture

2. Strengthen Processing technology Strawberry, Lapsi powder, Lapsi pickle,

3. Introduction of cooperative and Group business approach

Rainbow Trout, Processing Units for products

4. Partnership for product development Incense Stick and Candle 5. Strengthening women entrepreneurs for Allo Fibre and Carpet

Kalimati wholesale market – a major market for vegetables and fruits

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linkages with the enterprise networks

6. Empowerment of women entrepreneur in business knowledge with partnership with market promoters

All products

Strategic Choice 1: Increase in production capacity, introduction of improved varieties of products and effective farm management:

Discussions with the market actors have shown that there is a high demand of agriculture products (Refer product profile). There is a gap between the demand of products and supply i.e. strawberry, asparagus, and floriculture.

Strategic choice for BSC is to work at the production level and strengthen farmers and groups for improving their production capacity through technical assistant and technology transfer.

There are possibilities of allocating land by the market promoters to the interested farmers in Kakani area for production of agriculture products. Few market promoters have shown their interest in providing them a required inputs mainly saplings with payment in instalment basis. (Refer market promoter Matrix).

For market led production it is important to have discussions between the target beneficiaries for season and time based production (e.g. Floriculture)

Organic products in the Kathmandu market are still low in demand mostly consumed by expatriates living in Nepal but growing steadily over a period due to influence of growing demand in the international market. It is important to educate farmers now itself about its importance and motivate them to grow organic products.

Strategic Choice 2: Strengthening Processing Technology (Strengthening hygienic processing and branding of processed products)

After discussion with the market traders, it is understood that there are processing opportunities in Bulgar Sweet (Lapsi) and Strawberry. At present, market promoters are already processing and selling in a small quantity in the urban Kathmandu market.

Bulgar Sweet (Lapsi) products are high in demand and consumers are satisfied with a unique and healthy taste of different varieties of Lapsi products. Consumer’s main concerns are hygienic processing and improved packaging.

Strawberry can be processed for preparing juice and jam and this has been done in small quantity at Okharpauwa district by the local producers. The customer from hotel and restaurant ask for hygienic processing with uniform taste and other uniformity of production. Establishing processing units is best suitable owned by a group or cooperative. At present, Nava Jivan cooperative is processing strawberry for preparing Strawberry Jam but with a very limited knowledge. Strengthening these processing units and linkages with the involvement of market promoters as an investment partners for its promotion has been discussed with the promoters.

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Strategic Choice 3: Strengthening Co-operatives and Groups (Co-operative and Cooperative Private Partnership for business)

Certain products like Rainbow Trout and Strawberry processing requires high capital investment (Refer Cost benefit Analysis). Existing cooperative like Naya Bihani Cooperative in Okharpauwa has initiated production of strawberry jam and juice. The processors in Kathmandu are hesitated to work in partnership with the VDCs level processors due to difficulty in maintaining quality and other hygiene and sanitation. Introducing appropriate technology and required technical supports for hygiene production can attract private investors for partnership with the local cooperatives.

All processed products require branding and promotional activities to meet the required sales target.

Similarly, Rainbow Trout fish production has to be initiated through cooperative business model rather than the individuals due to high investment amount. This type of business has to be linked with the restaurant so that products can be sold in fresh. Long-term purpose can be packaging front.

Project has to strengthen cooperative based enterprise and see active role of women as entrepreneur and employment for them.

Strategic Choice 4: Promoter Partnership for Product Development (Facilitating Business between market promoter and entrepreneurs)

This strategy applied in all partnership process for all identified products. Detail planning with the market promoter has to be carried out for production, product improvement and marketing.

For specific products like incense stick and designer candle, Mahaguthi as a promoter has shown especial interest for partnership with the BSC entrepreneurs (Ref: Promoter Matrix).

BSC project should facilitate in establishing linkages between the market promoter and the BSC entrepreneur and should work on the gaps for bringing products as per the market demand.

Market promoter has to be encouraged to provide embedded services and cost sharing for production, technology and market promotion.

Market promoters have shown interest on instalment payment for saplings, allocation of land for plantation, embedded technical information, market information, buy back and contract system.

Strategic Choice 5: Strengthening Women for Linkages with Enterprise Network (Working with existing and potential enterprise)

Various organizations are working in the BSC working VDCs like OVOP/ FNCCI (One Village One Product, Federation of Nepalese Chamber of Commerce and Industries), MEDEP (Micro Enterprise Development Program), World Vision, SABAH (South Asian Business Association for Home Based Workers), Cottage and Small Industries, DADO (District Agriculture Development Office), WDO (Women Development Office), DLSO (District Livestock Service Office) and DFO (District

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Forest Office). These organizations have carried out various activities for women entrepreneurship. BSC should work on lessons learned and the gaps identified with synergetic effort in the promotion of enterprise development.

Specific products in Allo nettle and Carpet where there is already a well-established systematic contract system (wage labour) with the women beneficiaries. SABAH project is currently been implemented by Home net Nepal, which can be a potential partner for establishing women beneficiaries into successful entrepreneurs.

Strategic Choice 6: Empowerment of women entrepreneur in business knowledge with partnership of market promoters

The important point is to have market promoter’s partnership with women entrepreneurs. In this regard, for initial phase market promoters have to empowered women for knowledge on business for bringing them on mainstream market. Facilitating organisation like BSC project has to work jointly with market promoter to develop the capacity or empowered women for business operation.

Activities to empower BSC women are:

1. Mentoring on account keeping 2. Providing technical skills on product development 3. Provide business skill knowledge and marketing techniques 4. Support them in identifying customer needs and demand

Table 16: suitable location proposed for selected products S.N. Product/ Services Location (Target group)

1 Candle Thecho and Saibu 2 Incense Stick Thecho and Saibu 3 Rainbow Trout Kakani and Okharpauwa

4 Lapsi Products Sirutar 5 Asparagus (Kurilo) Kakani and Okharpauwa

6 Mushroom Thecho, Sirutar, Kakani, and Okharpauwa

7 Allo Nettle Fibre Thecho and Saibu 8 Strawberry Kakani and Okharpauwa

9 Poultry Farming Thecho, Saibu and Sirutar, 10 Tata-Rose- Floriculture Kakani and Okharpauwa

11 Tailoring ( New born baby clothes)

Thecho,

12 Tibetan Carpet Thecho and Saibu 13 Organic Product Kakani and Okharpauwa

14 Sculptures Thecho Product wise Recommendation

Asparagus: There is a need of assessment of plantation, identification of key entry points where production of improved variety, organize meetings between market promoter and the entrepreneurs for joint planning for timely production,

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access technical information for production, access to finance for production and market linkages with the promoter and market.

Strawberry: Examine present grading system, strengthen cooperative for inclusion of more members (especially women) for marketing, and research on processing potentials.

Organic vegetables: There is a need to identify organic plantation sites, orientation to the farmers on organic cultivation, linkages between the farmers and promoter for organic production, access to technical information and finance for production, marketing linkages with promoter and local market.

Candle: There should be a discussion between Mahaguthi and BSC entrepreneurs for candle making, technical training and access to finance for equipments, initially start with normal candles and make designer candles later on depending on the seasonal demand.

Tibetan Incense: There is a need of discussion between Mahaguthi and BSC entrepreneurs for incense making, assessment of raw materials, linkages with raw material providers, training on technical knowledge and technology transfer, and market linkages.

Rainbow Trout: There is a need of assessment of water source, formation of group business, development of cooperative level business plan for restaurant and rainbow trout business, access to technical information and technology transfer, product development in packaging and storing, and market linkages.

Lapsi (Burglar Sweet): there is a need of identification of present supply conditions, increase in production of Lapsi, research on value addition technology, support on promotion of value added products, access to finance and market linkages.

Mushroom (White Button and Oyster) : there is a need of discussion and partnership between promoter and entrepreneurs, assessment of environmental impacts of mushroom business, access to technical information and technology transfer, product development in packaging and branding (joint branding).

Fibre based Products: There is a need to identify locations for source of Allo nettle fibre, access to technical information and technology, formation of home based workers network, access to finance and social security options, product development, market linkages

Poultry farming: There should be a discussion between the Valley Feed Pvt. Ltd. and entrepreneurs on technology transfer and technical information, training on improved poultry farming, access to finance, hygienic product development, local market and promoter market linkages

Tata-Rose: There should be feasibility testing for floriculture business, technical information and technology transfer, partnership with promoter for production, improved farm management, marketing linkages with market actor and promoters.

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Tailoring business: There should be discussion between women entrepreneurs and market promoter for product identification, technical information and technology transfer, access to finance, local market and promoter market linkages.

Tibetan Carpet: There should be one round of discussion between the women entrepreneurs and the contractors for long term planning. There should be development of plan, linkages with home based women for networking, technical information and technology transfer, niche product development, access to finance, market linkages to promoter and market.

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6. COST BENEFITS ANALYSIS OF POTENTIAL PRODUCTS/SERVICES Cost benefit analysis of potential products/services are prepared with the information gather at the time of interviews and interaction with the various organisations. Total cost of production is estimated based on the raw materials, labours, skill and other expenses required during the production. Selling price is estimated based on the existing market price. Cost per kilogram is calculated by dividing with the total production amount. Net profit per kilogram is finally calculated along with the profit margin, which will provide us a basic reference to judge as a profitable venture to invest in future. Following formulas are used to calculate financial details in the cost benefit analysis of each individual product.

1. Total cost of production is calculated by summing up all the cost incurred. 2. Cost per kilogram is calculated by dividing total cost of production with the net

production quantity in Kg. from 300 seedlings. 3. Net profit per kilogram is difference between sales prices with the cost per

kilogram. 4. Net profit is calculated by multiplication of net profit per kilogram with the net

production quantity. 5. Profit margin in percentage is calculated based on formula, which is net profit per

kilogram divided by sales price multiplied by 100.

6.1. Product Name: Asparagus

Assumptions: Expenditure details for 300 seedlings, harvesting time of 36 months from the

transplantation dates Total production of 200 kg from 300 seedlings

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Seedling Numbers 300 20 6,000 2 Transplantation Person 12 150 1,800 3 Compost fertilizer Kg 1500 5 7,500 4 Labour used for weeding, cleaning,

irrigation and harvesting Person 80 150 12,000

5 Transportation and carrying charge Kg. 200 5 1,000

6 Others Lump sum - - 5,000 Total cost of production 33,300 Cost per kg. 167 Selling price per kg. 300 Net Profit per kg. 134 Net profit from 300 seedling 26,700 Profit margin in % 45

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6.2. Product Name: Strawberry

Assumptions: Expenditure details for 1000 seedlings and harvesting time of 90 days from the

transplantation date Net production of 2,500 kg from 1,000 seedlings

SN Raw materials Unit Quantity Unit

rate Amount

NRs. Remarks

1 Seedling Numbers 1000 5 5000 2 Transplantation Person 2 150 300 3 Compost manure Kg 1200 5 6000 4 Labour used for weeding

and cleaning Person 15 150 2250

For 90 days 5 Irrigation Person 30 150 4500 For 90 days 6 Harvesting Person 90 150 13500 90 days 7 Medicine Litter 1 500 500 1 litter 8 Transportation and carrying

cost Kg. 2500 5 12500

9 Packaging labelling Pieces 2500 7 17500

10 Others Lump sum

2000

Total cost of production 64,050 Cost per kg. 26 Selling price per kg. 100 Net Profit per kg. 74 Net profit from 1000 seedling 185,950 Profit Margin in % 74

6.3. Product Name: Tailoring

Assumptions: Yearly production of 1,800 pieces of finished goods of Kurta salwar Net finished goods of 1,800 pieces from 9,000 meters cloth

SN Raw materials Unit Quantity Unit rate Amount NRs. 1 Cloth Mtr. 9000 150 1350000 2 Thread Pcs. 1800 5 9000 3 Button Pcs. 1800 5 9000 4 Huck Pcs. 1800 2 3600 5 Buckram Pcs. 1800 5 9000 6 Wages ( labour ) Pcs. 1800 225 405000 7 Transportation Lump sum

5000 8 Electricity Lump sum

6000 9 Equipment maintenance cost Lump sum

3000 10 House rent Lump sum

6000 11 Annual depreciation of fixed cost 4250

Total cost of production 1,809,850

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Cost price per pcs. 1005 Selling price per pcs. 1100 Net Profit per pcs. 95 Net profit from 9000 mtr. raw cloth 170,150 Profit Margin % 9 List of Fixed assets (Machine & equipment) SN Types of assets Unit Quantity Unit

rate Amount

NRs. 1 Machine (Sewing ) Pcs. 1 6000 6000 2 Machine ( Piko ) Pcs. 1 6000 6000 3 Machine (Logar ) Pcs. 1 5000 5000 4 Tape Pcs. 3 10 30 5 Seizer Pcs. 2 200 400 6 Stool Pcs. 3 300 900 7 Furniture Rack Pcs. 1 5000 5000 8 Table Pcs. 1 5000 5000

Total Amount 28330 Annual depreciation@15% 4250

6.4. Product Name: Vegetable

Assumption: Spinach (in Nepali, Rayo Sag) for 12,000 small package Production time June to January from transplantation to harvesting. Net production 12,000 small package from 6 kg of seeds

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Seedling Kg. 300 20 6000 2 Transplantation Person 12 150 1800 3 Compost fertilizer Kg 1500 5 7500 4 Labour used for weeding, cleaning,

irrigation and harvesting Person 80 150 12000

5 Transportation and carrying charge Kg. 200 5 1000

6 Others Lump sum - - 5000

Total cost of production 33,300 Cost per Kilogram 167.00 Selling price per Kilogram 300.00 Net Profit per kilogram 133.00 Net profit from 12000 small package 1,596,000 Profit Margin % 44

6.5. Product Name: Wax candle

Assumption: Annual production of 1,530,900 pieces from 24,300 kg of raw wax 63 pieces of candle can be prepared from 1 kg raw wax Raw materials are imported from China

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SN Raw materials Unit Quantity Unit rate

Amount NRs.

Remarks

1 Wax Kg. 24300 111 2697300 2 Thread Kg. 15 140 2100 3 Plastic for normal packaging Kg 200 200 40000 4 Wages for skilled labour Per

person per month

2 8000 16000

5 Wages for normal labour Per

person per month

2 4500 9000

1 person for 12 months

6 Transportation - - - 84000 1 person for 12 months

7 House rent ( office and warehouse )

Lump sum

- - 9600

8 Labelling Lump sum

- - 50000

9 Staff Person 1 6000 6000 10 Annual depreciation of fixed

Assets - - - 4970

Total cost of production 2,918,970 Cost per pieces 2 Sales price per pieces 2.50 Net profit per pieces 0.50 Net profit from 1530900 pieces 765450.00 Profit margin % 20

Depreciation of fixed asset (Machine & equipment) SN Types of assets Unit Quantity Unit

rate Amount

NRs. 1 Key for candle making Pcs. 7 2500 17500 2 Gas cylinder Number 12 1150 13800 3 Kilti Pcs 2 840 1680 4 Knife and seizer Pcs 2 75 150

Total amount 33,130 Annual depreciation @15% 4,970

6.6. Product Name: Poultry

Assumption: From 1,000 chicks after 3 months it is ready for meat Yearly production of 2,250 kg chickens from 1,000 chicks Average weight of chicken is 2.5 per kg.

SN Raw materials Unit Quantity Unit

rate Amount

NRs. 1 Rick Husk Kg. 1000 2.4 2400 2 Wood Husk Kg. 600 4 2400 3 Lime Kg 5 30 150 4 Chicks Number 1000 42 42000

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5 Feeding for chicken Kg. 7000 32 224000 6 Medicine Lump

sum - - 10000

7 Labour and loader Person 3 5000 15000 8 Transportation Lump

sum - - 10000

9 House rent Lump sum

- - 24000

10 Packaging and labelling materials Lump sum

- - 10000

11 Electricity and Telephone Lump sum

- - 3000

12 Annual depreciation of fixed Assets - - - 6447 Total cost of production 349,397 Cost per kilogram 155

Average selling price per kilogram ( meat ) 200.00

Net profit per kilogram 45.00 Net profit from 1000 chickens 45000 Profit margin 23

Depreciation of fixed asset (Machine & equipment) SN Types of assets Unit Quantity Unit

rate Amount

NRs. 1 Water pot Piece 30 583 17490 2 Feeding pot Piece 30 583 17490 3 Store drum (Bhukari) Number 2 4000 8000

Total amount 42,980 Annual depreciation@15% 6,447

6.7. Product Name: Mushroom

a. White button Mushroom Assumption:

For 50 kg production from 20 bottle seeds

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Straw Kg. 200 1 200 2 Seeds Bottle 20 25 500 3 Plastic bag for shed Kg. 2 100 200 4 Fire wood Lump sum - - 100 5 Rope - - - 20 6 Wages Person 2 200 400 7 Transportation, marketing and

carrying charge Lump sum - - 300

8 Labelling and packaging materials Lump sum - - 200 9 Medicine Lump sum - - 200

10 Rent Lump sum - - 500

Total cost of production 2620 Cost per kg 52.4

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Selling price per kg 100 Net profit per kg 47.6 Net profit from 50 kg 2380 Profit margin 47.60% b. Oyster Mushroom: Assumption:

For 200 kg production SN Raw materials Unit Quantity Unit rate Amount

NRs. 1 Straw Kg. 1000 2 2000 2 Seeds Bottle 20 25 500 3 Ammonium sulphate K.g 20 20 400 4 Tri super phosphate Kg 7 25 175 5 Chun K.g 30 10 300 6 Wages Person 5 200 1000 3 Plastic bag for shed Kg. 10 100 1000 4 Fire wood Lump sum - - 200 5 Rope - - - 500 6 Transportation, marketing and

carrying charge Lump sum - - 2000

7 Labelling and packaging materials Lump sum - - 1000 8 Medicine Lump sum - - 1000

9 Rent Lump sum - - 2000

Total cost of production 12075 Cost per k.g 60 Sales price per k. g 120 Net profit per k.g 60 Net profit from 200 k.g 12000 Profit margin 50%

6.8. Product Name: Bulgar Sweet (Lapsi) candy

Assumption: For making 300 kg of candy

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Sugar K.g 45 60 2700 Spices - Hing, Bire Salt, Geen 2 Cardamom, Corbel.lwang

K.g 1 300 300

3 Kerosene Ltr. 10 55 550 4 Lapsi K.g 300 25 7500 5 Plastic K.g 5 45 225 6 Packaging and labelling Pcs. 300 3 900 3 Salt K.g 5 11 55 4 Chilli K.g 1 200 200 5 Transportation, marketing and carrying

charge Lump sum

- - 3000

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6 Rent Lump sum

- - 2000

7 Labour wages Lump sum

- - 8000

8 Annual depreciation of fixed assets 684

Total cost of production 26114 Cost per k.g 87 Sales price per k. g 150 Net profit per k.g 63 Net profit from 300 k.g 18900 Profit margin 42% Depreciation of fixed asset (Machine & equipment) SN Types of assets Unit Quantity Unit

rate Amount

NRs. 1 Vessels (Dekchi and Bata) Pcs. 3 500 1500 2 Stove Pcs. 2 500 1000 3 Frame Pcs. 1 400 400 4 Knife Pcs. 4 65 260

Weighing machine and 5 Weights

Pcs. 2 700 1400

Total amount 4,560 Annual depreciation @15% 684

6.9. Product Name: Tata Rose

Assumption: For 1,000 seedlings and harvesting time of 6 month from transplantation date Total production 20,000 pieces from 1,000 plants

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Seedling/plant Number 1000 25 25000 2 Transplantation Person 12 250 3000 3 Compost manure Kg 750 5 3750 4 Weeding, cleaning, irrigation and

harvesting ( Wages ) Person 90 150 13500

5 Medicine Lump sum - - 2000

6 Plastic for shed Kg 10 100 1000 7 Bamboo Lump sum - - 1000

8 Pipe Lump sum - - 500

9 Tools Lump sum - - 500

10 Packaging and labelling Lump sum - - 12000

11 Marketing and carrying charge Lump sum - - 5000

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12 Rent Lump sum - - 6000

13 Others Lump sum - - 2000

Total cost of production 75250 Cost per pcs. 3.7 Selling price per pcs 8 Net Profit per pcs. 4.3 Net profit from 20000 pcs. 86000 Profit margin 53.75%

6.10. Product Name: Trout Fish

Assumption: 10,000 fingerlings can be rear in 4 ponds from 1 msq, 20 kg fish can be produced, in this way, 2000 kg fish can be

produced from 100 msq) SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Fingerlings Pcs 10000 4 40000 2 Feeder Kg 2500 200 500000 3 Wages for labour Person 2 52000 104000 4 Electricity Lump sum - - 15000

5 Marketing and carrying charge Lump sum - - 30000

6 Water Lump sum - - 10000

7 Packaging and labelling Lump sum - - 15000

8 Rent Lump sum - - 60000 9 Phone and Administration charge Lump sum - - 20000

10 Medicine Lump sum - - 20000 11 Annual depreciation 5 % - - 35000

Others Lump sum 10000 Total cost of production 859000 Cost per kilogram 430 Sales price per kilogram 750 Net profit per kilogram 320 Net profit from 2000 kg 640000 Profit margin 43% Depreciation of fixed asset (Machine & equipment) SN Types of assets Unit Quantity Unit

rate Amount

NRs. 1 Ponds (4 ponds 100 msq) Pcs 4 150000 600000 2 Pipes Lump

sum - - 80000

3 Tools Lump sum

- - 20000

Total amount 700,000 Annual depreciation@5% 35,000

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7. POSSIBLE INTERVENTION STRATEGIES FOR BSC SUPPORTED

ENTREPRENEURS BSC should work very closely with the local women beneficiaries from selection of suitable enterprise, production, processing and final, the marketing of the products and services. Local beneficiaries are at early stage of the business and there are many constraints that could be overcome by supporting them by providing support services and very specifically linking them with the market promoters. Market promoters will ultimately purchase all products developed by the beneficiaries and in addition to that they will provide knowledge on various market information and other technical inputs. Few market promoters are identified in each identified products that are suitable in the program areas (refer annex for more details). There should not only the buying and selling relationship with the market promoters but also should build relationship as a long-term business partner. There is a need of right appropriate technology and should be provided to beneficiaries on a cost-sharing basis. There are available technologies that are less expensive, appropriate, and simple to learn and use. Complicated and expensive technologies imported from foreign countries will not be useful in rural areas. Without technology in this competitive market quality products cannot be produced. BSC would play a facilitating role and as a service provider in few areas - counselling, training and backstopping support. BSC will work closely with the promoters in designing new innovative products and services with the activity and financial plans. The psychosocial factors are very determinant factors for promoting women’s entrepreneurship therefore provide training package on raising the self-image and self-perception to empower women beneficiaries through leadership, and confidence building. Strategy for BSC program A. women entrepreneurs

Raise awareness to the BSC beneficiary to improve their family environment by division of works between men and women and encourage women to participate

Beneficiaries as

women Entrepreneurs

B

B B

B B

P

B

+ = Successful Enterprise

Knowledge and Technology transfer

and inputs

Improved products

Market promoters

Figure: Intervention strategy model

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in the income generating activities that would support family. Incentive brings joy and happiness in the family that will subsides other small problems at home.

Gradually participate BSC beneficiary in new innovative products/services where is a high risk of business rather it is always better to start what that are good at with small innovations. Usually there is a high expectation from the program implementer from the beneficiary but gaps are high in terms of skill and capacity of the beneficiaries.

In Okharpauwa and Kakani area where there are huge possibilities to commercially produce agriculture commodities those BSC beneficiary who are having cultivation skills with commitment but limited land areas should be provided with more land in lease for commercial agriculture practices.

B. Marketing of products/services Market Environment: It refers collaboration with various other organisations working in the same sector promotion.

Collaboration with Agro Enterprise Centre Demonstration, awareness and training for entrepreneurship development Collaboration with DADO, DLSO and WDO Collaboration with other projects like KIVA, MEDEP, OVOP etc.,

Market Assessment: Market assessment research can review one's existing markets from where one may be able to sell more to current market segment or new market segment. It exemplifies different market parameters status and helps in developing market trends and forecast for new planning.

BSC has to prepare in-depth intervention plan of each products and services in the target area

BSC has to contact with market promoter and plan in detail for empowerment of women entrepreneurs

Product and service prioritized will be able to provide initial stage of business knowledge and BSC has to further work with women entrepreneurs for value addition and product diversification

Product

Product and services were identified based on the present market situation and in further other products may be added during the project implementation period.

BSC has to facilitate beneficiary to work on making the product with consistent quality and achieve national standard

Innovation and product diversification should be emphasizing to the beneficiary once they are involved in the producing and marketing of products/services.

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Place

Local market potential should not be undermined and should utilize the channel of market promoters to reach their consumers. BSC can facilitate in further strengthening the market linkages with the promoters.

Price

Initial pricing strategy should be based on current market price at the local level and compromise while dealing with the market promoters. Later on when the products are more diversified with value addition and trust gained with the promoters then BSC has to work on ‘Single Brand’ name of the product/services and the pricing strategy shall be revised.

Promotion

Development of a ‘Single Brand’ name for multiple products in the later stage of business promotion when the beneficiaries started producing commodity and selling in the commercial market.

Participation in exhibition and buyers- seller meeting Documentary programs

Process

Decreasing the transaction cost for input supply and product marketing in short term. That is directly linking entrepreneur with market promoter for input supply and marketing

Development of single brand and establishment of marketing entrepreneurs in long run for bulk selling

Facilitation for provision of embedded services to entrepreneurs from Market promoters in short term and Empowerment of entrepreneur for increasing scale of operation and own brand and marketing in long run

People's Perception

Customer should be educated with product details about its historical background, how it is been produced and instruction to use etc.,

Physical Appearance

Improvement on quality of products Certification of national standards Label and brochure design as per the product specification

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8. MAJOR FINDINGS AND RECOMMENDATIONS FOR BSC PROJECT One of the major barriers of women beneficiaries is not been able to give

sufficient time in income generation activities. It will not be wise for us to propose them to involve in a business where it requires less time for their involvement. In fact, there are no as such business ventures without time and commitment required. There is a need of counselling to the women beneficiaries to make them realised that in a business in addition to the basic skill, time and commitment is an another important factor for its success.

There is a need of analytical and management skill to the beneficiaries for problem solving techniques and operation and management of small business ventures.

One of the special characters of an entrepreneur is identification and foresee of market opportunities. The existing women beneficiaries showed their interest in starting new ventures and some in further expansion with more market linkages. Showing interest alone is not sufficient; they need to expose them more with the market actors. Exposure visit to the beneficiaries at major market centres and small and cottage industries like Association of Craft Producers (ACP) will help the beneficiaries to broaden their mindset to think beyond what is there only in areas.

Technical skill alone is not sufficient to produce quality product. There is a need of regular coaching and supervision support services by the experts until they are themselves capable to produce as per the standards.

Beneficiaries are usually free from 11 AM up to 3 PM so this time is suitable for interaction and training to them.

Some of the skill trainings such as tailoring, knitting and weaving are requested by the beneficiaries due to the reason that it adds value to them as an extra asset that benefits to their family but this skill is not been utilized properly by all for commercial purpose.

Most of the beneficiaries have started their business with a technical skill alone and that too by not taking formal training or education but mostly by learning by self. In a business, regular training course adds value to give confidence to the consumers. That is a reason why many tailoring shop display their training certificate.

Selection of suitable enterprise for the beneficiaries is important for its success. Proper selection required counselling at the time of starting the venture. BSC can provide counselling to its beneficiaries.

Beneficiaries have now access with local level saving & credit groups, cooperatives for small loan amount but for more investment (one hundred thousands), they should have access with the financial institutions and banks. To understand the actual investment required at the time of business start-up or expansion, detail business scheme or plan should be prepared on each selected sub sectors.

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Beneficiaries have very less knowledge on business registration process. In commercial business transaction, Government has enforced provision of separate PAN number and all financial transactions to be kept transparent. Some level of registration process and basic accounting knowledge should be provided to the beneficiaries.

Skill trainings on different batches should be provided to the beneficiaries with respect to the VDCs. Such skill trainings should be outsourced to the skill-training providers after finalizing sub sectors. In some sub-sectors service providers are located in the VDCs. BSC should facilitate the linkages with the service providers on cost sharing basis.

For regular monitoring at the field level activities, ‘Social Mobilizer’ should be appointed in each project areas if possible one social mobilizer in each VDC or else one in each cluster. Social Mobilizers will work very closely with the beneficiaries after they are oriented in business basics.

For regular purchase of inputs and collective marketing producers group should be formed in each sub sector. Group leader should be appointed to take the responsibility together with the support from BSC for procuring raw materials and linkages with the trader for collective bargaining. There are also chances of visiting by the traders at the farm location for purchasing of products. The producers group will act as a collection centre having infrastructure of weighing machine and storage facility.

Many beneficiaries have shown their major concern towards improving quality of product. Quality can be improved by better inputs i.e. quality seeds, systematic planning, modern affordable appropriate technology and quality controlling mechanism at place. In agriculture sector, disease and pest controlling mechanism is another major issues raised by the beneficiaries farmers. Corrective measures could be taken by exploring possibilities of services from Government departments (NARC, Department of Agriculture) and private service providers.

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9. REFERENCES

1. BSC database (BSC-Secondary Market Information Report, Village Profile, Beneficiaries roster, Cooperative list, Micro & small credit scheme report etc.)

2. Rainbow Trout Fish farming technology, fish farming series 13. 3. Rainbow Trout farming Production and Management techniques, Fish farming

series: 14 4. Factor affecting women entrepreneurship in small and cottage industries in Nepal,

Mr. Jyoti Tuladhar, September, 1996, ILO

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10. SUMMARY OF OVERALL PRODUCT/MARKET INFORMATION

Product/Service VDC Skill/Resources Production cost (in kg)

Market price Market promoter/Traders

Asparagus Okharpauwa, Kakani Firewood, Forage, Forest, Land, Water, Bamboo, Banmara, Compost Fertilizer, Timber

Rs. 167 per kg Rs. 300 per kg Sameer Man Shrestha

Traditional Incense Sticks

Sirutar, Sainbu, Kirtipur, Bamboo, Land, Mill, Straw, Compost Fertilizer, Water

n/a - Religious Incense: Rs. 5 per 20 piece

- Tibetan Incense: Rs. 50-100 for 20 pieces

Uttara Malakar, Mahaguthi

Candle making Sirutar, Sainbu, Chapali Bamboo, Land, Mill, Straw, Compost Fertilizer, Water, Forage, Forest, Lapsi, , Pine leaf (Sallepir)

Rs. 2 per piece Rs. 2.5 per piece Uttara Malakar, Mahaguthi

Floriculture – Seasonal

Chapali, Kakani Water, Forage, Forest, Lapsi, , Pine leaf (Sallepir), Bamboo, Banmara, Compost Fertilizer, Timber

Rs. 4 per piece Rs. 8 per piece 1. Rajendra, Standard Nursery Group 2. Sameer Man Shrestha, AFPC

Hotel and restaurant

Kakani Bamboo, Banmara, Compost Fertilizer,

Timber

n/a n/a n/a

Lapsi candy and pickle

Chapali Water, Forage, Forest, Lapsi, , Pine leaf (Sallepir)

Rs. 87 per kg Rs. 150 per kg Ms. Indira Sapkota, Nepal Grihani Udyog

Mushroom Sirutar, Sainbu, Chapali, Okharpauwa

Firewood, Forage, Forest, Land, Water, Bamboo, Banmara, Compost Fertilizer, Timber

Rs. 60 per kg Rs. 120 per kg 1. Ram Krishna Sahu, Kalimati Wholesale Market 2. Tanka Raj Parajuli, Grameen Agro Enterprise

Nepali carpet (Galaicha)

Thecho Yarn, Irrigation and Pond, Land, Bitten Rice preparing Machine, Straw, Water

For 100 knot per meter Rs. 3000

For 100 knot per meter Rs. 4500

Sunil Lama, Boudha Carpet

Poultry Sainbu Compost Fertilizer, Land, Mill for Paddy and Maize, Straw, Water

Rs. 155 per kg Rs. 200 per kg Hari Krishna Sahuji, Valley Feed Industries

Retails shop Thecho, Kirtipur Yarn, Irrigation and Pond, Land, Bitten Rice preparing Machine, Straw, Water, Compost Fertilizer

n/a n/a n/a

Sculpture - wood and copper

Thecho Yarn, Irrigation and Pond, Land, Bitten Rice preparing Machine, Straw, Water

n/a n/a n/a

Seasonal and off seasonal vegetables

Sirutar, Sainbu, Kirtipur Bamboo, Land, Mill, Straw, Compost Fertilizer, Water, Forage, Forest, Lapsi, , Pine leaf (Sallepir), Bamboo, Land

Rs. 167 per kg Rs. 200 per kg Ram Krishna Sahu, Kalimati Wholesale Market

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Strawberry Okharpauwa Raw materials for Bio Briquette, Firewood, Forage, Forest, Land, Mill, Water

Rs. 26 per kg Rs. 100 per kg 1. Upendra Shrestha, Oriental Enterprises 2. Sameer Man Shrestha , AFPC

Trout fish Kakani Bamboo, Banmara - Briquette, Compost Fertilizer, Forest, Land, Bamboo (Nigalo), Timber

Rs. 430 per kg Rs. 750 per kg n/a

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11. ANNEX

11.1. Institutions Providing Services to Women Enterprises

Various organisations are involved in the promotion of women entrepreneurship in Nepal. To understand existing status of services providers in these sectors, the study team visited various organisations and explored secondary source of information to compile a service provider’s areas of services and terms & conditions to be abided by the BSC beneficiaries for receiving those services. Later in the project interventions in the BSC target areas, these organisations could be collaborated or in partnership, basis services could be delivered.

11.2. Government Agencies

According to the Industrial Policy (1992), privatization has been part of a new conscious policy to direct economic activities through the private sector. The industrial policy, however does not explain how the private sector can achieve sustainability. It does not consider the need for developing entrepreneurship in general, or adopting sectoral approaches such as women entrepreneurship development. The Eight Plan emphasized cottage and small industries to meet internal demand. One window system was established to provide all facilities to industries. The Ninth Plan emphasized increase in production of processed commodities. Leading role was given to the private sector. The Tenth plan emphasized sustainable development of entrepreneurship & skills for SMEs based on local agro forest resources In the Eight Five-Year Plan (1992-1992), it has clearly stated that cooperatives institutions will play an important role in the development of rural women. Agricultural, cottage and rural industry programmes, as well as cooperative consumer stores and saving programmes, will be encouraged through cooperatives. Women’s participation will be increased through various cooperative training programmes. Besides the bank and other financial institutions, there are also a number of non-governmental organizations, which provide credit. Some of these organizations provide credit directly to beneficiaries whereas other provides credit to saving and credit groups formed among the beneficiaries. As the funds of these groups are minimal, the loan amounts disbursed by these groups are not enough to start even or small or micro-enterprises. Thus, no doubt, some initiatives have been introduced to assist women entrepreneurs but these are mere drops in the ocean. Women in Development Plans:

Separate Chapter in the Sixth Plan with WID approach 7th Plan recognized the need for amendments of laws & regulations to improve

their social & economic status. 8th Plan policy focused in increase in women's representation at the decision

making level. Gender development & gender empowerment indicators up to 0.550 & 0.500 &

increase their participation in decision making at least 20%.

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The Beijing Declaration and Nepal

Macroeconomic policies that target women as producers and contributors to the national economy with their entrepreneurial skills in market economy

Rural-based agricultural skills, but also need to expand and incorporate urban-based skills and technology for women

Programmes and incentive to encourage women to enter the private sector through linkages with rural and urban enterprises

a. IEDI The Industrial Enterprise Development Institute (IEDI), a national resource organization committed to entrepreneurship development through training, research, consultancy and enterprise education was established in 1996 as a successor of Industrial Enterprise Development Centre which itself was a successor of former Small Business Promotion Project (SBPP), a joint project of Ministry of Industry and German Technical Cooperation (GTZ) established in 1984. The approach pioneered and developed in Nepal by the project is being implemented in more than 70 countries in Asia, Africa and South America, under the name of CEFE (Creation of Entrepreneurs, Formation of Enterprises). Services: Assist organizations, institutions, industries and enterprises through need-based

services such as trainings, entrepreneurship and management development, feasibility studies, consultancy and training of trainers

Provide quality support services to industry/enterprise development Carry out need-based action research to provide quality services for enterprise

promotion and development Conduct need-based programs to develop technical, entrepreneurial and

management related know-how and skills Research and development related activities Develop projects and organizations for enterprise development.

b. Small and Cottage Industrial Development Board (CSIDB)

CSIDB has established its own Women Development Cell with regular meetings with potential women entrepreneurs. CSIDBs major services include:

Providing skill development training and entrepreneur development training programme

Providing information regarding industrial policy, acts, rules and establishment procedures

Organising industrial fairs, exhibitions and providing recognition and award certificates, shield and cash prizes to best performing cottage industry entrepreneurs

Undertaking industrial feasibility studies and providing industrial project schemes of feasibility industrial to entrepreneurs

Providing registration and renewal of cottage and small industries and recommending the provision of facilities as per acts and rules

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c. Federation of Nepal Chamber of Commerce and Industries (FNCCI) and Agro

Enterprise Centre (AEC) FNCCI was established in 1965 and today has a membership of 68 District Chambers of Commerce and Industry (DCCI), 41 commodity Associations (including carpet, garment and handicrafts association), some 25,000 members and 377 associate members including all commercial banks and leading industries. FNCCI has established its own Women’s Development Committee, which is committed to lobbying in support of women entrepreneurs.

11.3. Donor/INGOs Programmes

a. Micro-Enterprise Development Programme (MEDEP): MEDEP program was initiated in 1998 as a pilot programme in 10 districts with support from UNDP. Main goal was to improve socio-economic status of low-income families through the development and promotion of micro enterprise thus contributing to the government’s efforts to reduce poverty in the country. It is aimed to provide low-income families with skills and technologies necessary for micro-enterprise development, ensure access to necessary finance and access to business development services. It has target of developing 70% women entrepreneurs. Target beneficiaries: MEDEP's target groups are low-income families below the poverty line. Under low-income families, the target groups are Low-income families with income of less than Rs.6,400, women, unemployed youths, people from socially excluded and poor communities.

Services:

• Provide support for product diversification and value addition of entrepreneurs' products and services.

• Support in market expansion and diversification. • Support in quality control. • Develop and maintain a comprehensive database using MIS on all

activities. • Provide various types of training with focus on existing and potential

women entrepreneurs

11.4. NGO

a. Women Entrepreneurs’ Association of Nepal (WEAN): Federation of Woman Entrepreneurs Associations of Nepal (FWEAN) is a not-for-profit organization aiming at representing the collective efforts of Women Entrepreneurs in the economic progress of the nation and decision making at national and international levels. FWEAN is the central body of WEAN established in 1989 and looks at establishing subsidiary WEAN chapters in all 75 districts of Nepal thus involving 10% of the 245,944 Entrepreneurs. Based in Kathmandu, FWEAN is a focal point for interaction with not only the government, but also the various national and international women's organizations. One of the key objectives of establishing

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FWEAN as an umbrella organization has been for the establishment of WEAN Chapters in the Districts of Nepal. To network and lobby for relevant policies and programmes on women’s issues with government and non-governmental organizations for national, socio-economic development. To build linkages and affiliations at the regional level for joint promotional entrepreneurial activities, setting up of intra country cooperative, focusing on promoting and marketing of products of Women Entrepreneurs.

b. Association for Craft Producers (ACP): ACP is a not for profit fair trade organization providing professional services in technology, design, marketing, managerial skill for over 1,200 low income, primarily female, craft producers. Since 1984, ACP has successfully balanced its business priorities with a strong sense of social obligation and we are proud to define ACP as a socially orientated, commercially viable enterprise.

ACP is the member of International Fair Trade Association (IFAT), Asia Fair Trade Forum (AFTF), Fair Trade Group Nepal (FTGN), and Federation of Handicraft Association (FHAN).

In 1984 the Association for Craft Producers has been founded under the Society Registration Act of B.S 2034 (1977) as a private, professional non-profit organization.

The founding members of ACP (all of whom individuals with sound experience in women and development) had the vision of an autonomous organization which could do business as well as work for the development of the craft workers. Their past experience also told them that training alone could hardly help promote handicraft production unless backed by an integrated support mechanism, which included, among others, supply of raw material, design, quality control and organized market outlets. This experience gave rise to a new concept of providing training emphasizing the up-gradation of existing basic skill of the producer through continuous on-the-job training, which ultimately unleashed the full potential of the producers.

The action was initiated with 38 producers and 5 full time staff in a rented building with 4000 sq. ft area with donors support in three skill categories. ACP has achieved steady growth since its inception, and today ACP is providing services to 1,200 artisans (women constituting 90%) from 15 districts of Nepal in 22 skill categories. We have 60 full time staff members and permanent facility of 43,000 sq. ft. area. We no longer have donor's support. Since past 20 years, we have been self-sustained and achieved annual turnover of over one million US dollars. We are maintaining sustainability not only from financial standpoint but also in technical and human resource development.

80% of ACP's production comes from individual and group producers outside our headquarters. Our headquarters has the facility for raw material preparation, prototype development, and finishing of crafts. Currently 100 producers are engaged in these activities.

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Domestic sales channels are retail store "DHUKUTI" located in the street of Kupondole and sells its products on a wholesale basis to hotels, restaurants, and other leisure industry businesses in Nepal. For export, Nepali Craft Trading Pvt. Ltd (NCT) is an export-trading partner.

c. Centre for Community Development and Research (CCODER): CCODER,

pronounced as 'See-koder' is a people-first, non-profit, non-governmental organization established in 1990, by the dedicated social workers who believe in the concept of self-reliant development of the under privileged by the underprivileged. CCODER is convinced that only the self-reliant and responsible action of communities and their members can lead to a continuing process of sustainable development. This process has to include both women and men and the members of all occupational and ethnic groups.

CCODER’s first step towards poverty reduction is to help the people identify the root cause of their problems, regain faith in themselves, learn new skills and realize their potential. The people need to know their worth and their dignity as human beings. They need to develop a belief that they can change their environment and should realize, as our motto states that “they are the masters of their own destiny".

d. Fair Trade Group (FTG)

Seven NGOs involved in handicraft production and marketing have joined to cooperate and provide each other with marketing information and advice. As NGOs with social development objectives, they re concerned with reducing exploitation in the handicraft industry. This group is modelled on a similar group initiated in Bangladesh by OXFARM. All of the group’s members enjoy trading relations with OXFARM and with other members. Members pay Rs. 1000 as a member fee. The organizations currently represented are Association of Craft Producers, Janakpur Women’s Development Centre, Kumbeshowor Technical School, Manushi Art and Craft: Mahaguthi, Nepal Women’s Skill Development Project and Sana Hastakala.

e. JAITI Nepal: JAITI has purchased about 60 ropanies (3 hectares) of land with

water source for irrigation at Kaulethana area of Kakani VDC of Nuwakot District in 1989. Some volunteer agriculture experts were invited from Japan and started trial cultivation on various crops along with improvement of soil structure and condition. After conducting various experiments on more than 100 species of different crops in a period of 6 years JAITI became able to disseminate in the locality with most expensive fruits in Nepal, like strawberry and Kiwi fruit. Beside that Japanese variety’s sweet potato also been disseminated as well. During this period the local farmers were employed as an in-service (with pay of local wage) trainees. They had to do every practical activities required in the and for a farm. Nearly 35 trainees were trained in-service basis during the past 15 years. Now one of the trainees is operating the farm by its own income.

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The farmers who are growing strawberry now were not ready to receive even free seedlings provided from the farm at the beginning. However, as we demonstrated them by selling the strawberry at Rs. 200 per kg at the farm they became interested to learn and grow by themselves, now. The retail price of strawberry was at that time from 400-600 Rs per kg in the market. Now-a-days more than 400 house farmers of Kakani area are enthusiastically growing strawberry and gaining 10 folds more income than other crops. The creditable point of these three crops we disseminate is that it doesn’t need to buy new seed/seedlings every year. The farmers themselves can produce seedlings on their own from the old mother plants. Farmers cannot afford spending money for buying expensive seeds every year.

To provide practical training to local farmers on improved technology of growing high valued crops, on its quality control and finally market their product at their own locality. Mr. Lhakpa Sherpa, who is one of the trainees from the very beginning is living in the farm with his family members and looking after and operating the farm since 1999. Beside him and his family, there are 4-8 local young farmers employed as daily basis in-service trainees. The farm is running from its own income since 1999.

11.5. Financial service providers

A. Patan Business and Professional Women (PBPW): Established in a year 1995 with 11 board members (55% from banks, 27% from different business professionals and 18 % from other professionals). Its working areas are in following VDCs i.e. Khokna, Sainbu Bhaisepati, Thecho, Chapagaun, Kirtipur, Poor and Disadvantaged communities of Lalitpur Sub-metropolitan City. Services:

Micro credit of amount Rs, 10,000 to 30,000 to each member with group guarantee at 10 per cent interest rate. Repayment should be done in 24 instalments for fortnightly centre meeting and 12 instalments for monthly centre meeting.

Support in-group formation to the target women having per capita income of USD 84 and of age 35 years. Provides pre group training to the new groups with 5 members. At one centre there should not be maximum 8 groups (40 members).

Conduct trainings to enhance group capacities for strengthening leadership and income generating skills i.e. Literacy, Gender Equity, Entrepreneurial Skills, Leadership, Business Skill Development.

Mechanism for exercising those services:

Women should be the within the criteria as specified above for group formation.

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Other criteria’s to be followed by the groups are: Pre Group Training for about a week should be taken by potential members before forming the group. Patan BPW will provide such training, 5 members will form one group, Maximum 8 groups (40 members) are considered in a centre, and centre meeting should be conducted fortnightly or monthly basis.

B. Madhyamanchal Grameen Bikas Bank: Established in a year 1995 now have 42 branch office in 15 districts. Target beneficiaries are women from rural poor household who owns less than 1 bigha (0.6 hectare) of land in Terai region and 10 Ropani (0.05 hectare) of land in hilly region or earning is below Rs.4, 400 per capita incomes per year. Socially and economically deprived women populations are also beneficiaries. Beneficiaries from Kirtipur, Chapali Bhadrakali, Sainbu, Thecho VDCs can avail services from the Grameen Bikas Bank. Services: Services provided by the bank are saving, credit, micro insurance and remittance. Other specific services are as follows:

Group formation to the beneficiaries with 5 to 9 members and provide compulsory group training. 2 to 13 groups in one centre

Micro credit: Both collateral and without collateral with group guarantee basis credit are provided to the beneficiaries. The credit disbursement is set yearly as first year maximum Rs.15, 000 - 20,000; second year Rs.20, 000 – 30,000; third year and above Rs.30, 000 – 40,000. On collateral based loan up to Rs.150, 000. Interest rate of 20 % for loan without collateral and of 16 % for loan with collateral on diminishing method will be charged. Repayment should be made fortnightly 4 per cent of principal loan amount with respective interest.

Savings: Both compulsory saving (group fund) and individual saving are done. Under compulsory saving, every borrower must deposit 5 % of the disbursed credit amount as a ‘group fund’ at the time of taking loan. Each member must deposit Rs.10 fortnightly as a ‘group fund’. This fund can be used by particular group members for their emergency needs. Under individual savings, voluntary personal saving facility is also available for the members of the bank.

Micro Insurance: Providing insurance facility for livestock (cow-buffalo) with the coordination of Karja Surakshan Nigam. Only the members can be received such facility after taking loan by the bank. Insurance facility for members and their family is also available.

Mechanism for exercising those services:

Women should be the within the criteria as specified above. Beneficiaries could avail services as specified above by forming a group and being

a member of bank.

C. Chhimek Bikas Bank: Bank is established in a year 2001 by obtaining license from Nepal Rastra Bank. Target beneficiaries are woman who doesn’t have more than 1.5 Bigha land, house and having per capita income not more than Rs.5500 yearly.

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Services: Services provided by the bank are saving, credit, micro insurance and remittance. Other specific services are as follows:

Group formation: Five deprived & poor women can be formed one group and Twenty-five member or five groups can be formed one Unit (Centre).

Micro credit: Under micro credit various types of loans are provided at interest rate of 18 per cent on diminishing method with fortnightly basis as follows:

a. General loan: The bank provides this loan to its group member for the first time up to Rs.1, 000 to Rs.20, 000 without collateral security.

b. Discipline loan: The bank provides maximum up to Rs.40, 000 including General loan only to its member who are disciplined and has completed the one loan cycle profitably.

c. Micro Enterprise Loan: The bank provides from Rs.40,000 to Rs100, 000 to the members who have completed Micro Credit loan cycle fruitfully and who are willing to extend their business.

d. CGISP Loan: The bank provides this loan product to the Water User group & individual for the irrigation purpose under the Community Ground Irrigation Sector Project. Under this project, the bank invests up to 90% of total loan amount of the project.

e. Unit House Loan: Under this loan heading every unit can get from Rs.1, 000 to 50,000 of loan amount in a very low rate of interest (10%). This loan product is created to make easy for building the unit house that is very necessary to conduct the monthly meeting and to interact among the group member.

f. Consumer Loan: The bank finances the old and disciplined member up to Rs.40, 000 in 0% interest rate for purchasing television, Refrigerator, Washing machine, Vacuum Cleaners to promote their business.

g. Alternative Energy: To help in the health of the member & environment, the bank started this loan product for Biogas Plant, Water Mill, Solar energy etc.

Saving: Under saving schemes various options are available as follows:

a. Monthly Saving: Monthly saving of Rs. 30 for each is a compulsion this fund is refundable if the saving is more than Rs.5, 000.00 for the purpose of illness, maternity and for social and educational work but the remaining balance should be minimum Rs.2, 000 in this saving account.

b. Disaster Saving: At the time of taking General Loan, loanees have to save

5% of the total loan amount. This fund will be provided at the time of disaster cases like flood, landslide, fire, snakebite, earthquake, thunder etc. Otherwise, they can withdraw the first saving only after 5 years of the savings or if the balance is more than 3000 keeping the remaining balance Rs.1500 in the account.

c. Optional Saving: It is a type of current account of the members. To open the account, Rs.100/- is necessary for minimum balance. Through this account, the members can deposit and withdraw the amount from their account. This fund helps very much at the time of recovery of the loan. In this saving, member can save from Rs.1 to 1000 in the monthly meeting

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or up to the remaining loan amount of the member and if they desire to withdraw their saving, they can withdraw from Rs.5 to 5,000 at the time of monthly meeting or in the given time by the office.

d. Unit Fund: This fund is created for helping the members to make Unit

house, to afford necessary materials for the meeting & training and to do the social welfare work. It is compulsory to save Rs.5 per unit member in this fund monthly.

e. Pension Saving: This is a kind of volunteer saving program only for the member introduced by CBB in order to secure the future of the member. Under this saving program, the member of this bank can save Rs.50 or Rs.100 or RS.150 but not more than 200. After nine years of the regular saving, the bank provides one and half amount, after 14 years double amount of the total saving and after sixteen years they get pension.

Micro Insurance a. Cattle Security Fund: When the clients take out the loan for big livestock,

they have to pay 5% premium of loan in order to secure the loanee from the death of their livestock. If the animal died within the loan period, the clients will get 75% of loan amount instead of loss.

b. Borrower Security Fund: In the time of taking the loan from the bank, compulsorily the program members should pay 1% of loan amount on loanee Security fund. This fund operation compensates in the death of loanee, which provides 100% of loan amount or in the case of guardian’s death, the loanee will get Rs.1, 500.00 as compensation.

Remittance: With the motive of making easy to receive the amount from abroad and different places of Nepal sent by the members’ relatives in their doorstep, the bank has launched the remittance service too. The bank has provided the remittance service through the Western Union Money Transfer, Himal Remit, IME, Prabhu Money Transfer, Manakamana Money Transfer, Bok Money Transfer etc.

Disciplined Member Welfare Fund: This fund is created for the disciplined unit (Centre) of the bank. Every Unit can get Rs.250/- monthly by the bank if there is 100% pre recovery, 100% loanee in unit, the unit evaluation number is not less than 80 in every monthly meeting, Unit with unit house, good utilization of loan, full unit, good disciplined record. This amount can be used in the work of their need by themselves such as education, health or in the other crisis etc. This fund is created according to the need of time and for the support of member future. The members have not to return this amount to the bank.

E. Nirdhan Utthan Bank: Bank was founded in 1998, and is now having 52 branch offices. The mandate of this NGO is to provide financial services to the poor rural women by adopting methodology of Grameen Bank of Bangladesh. Target beneficiaries are woman who doesn’t have more than 1.5 Bigha land, and having per capita income not more than Rs.5500 yearly. Services Basic services provided by the bank are micro credit to the groups through either group guarantee or collateral basis with an interest rate of 20 % on declining basis if the clients pay the instalment in centre meeting and 18% if instalment paid in branch offices. The

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lending methods are 2+2+1. The repayment shall be made on 24 instalments for fortnightly and 12 instalments for monthly centre meetings. The services provided are savings, micro insurance and remittance. G. Mahila Adarsha Sewa Kendra: Established in a year 1984 and since 2003 started program with micro loan income generation for single women with assistance of Friends of Nepal, New Jersey, USA. Program is working in advocacy and awareness creation about health issues: Gender issues, social and legal status issues, and women empowerment. Services Basic services provided are savings and credit facilities to the target beneficiaries. Target groups are women from the family having per capita income ≤ Rs.5500 or less and unmarried women with age more than 35 years. Mechanism for exercising those services:

Target beneficiaries should have undergone PRA and Pre Group Training for 5-15 days before forming a group of 5 members with maximum 8 groups (40 members) are considered in a centre and centre meeting should be conducted monthly basis.

Micro credit of amount Rs. 10,000 to 40,000+5,000 for each member with a lending method of 2+2+1 with group guarantee in 10 % interest flat rate. Repayment shall be done in a monthly basis in 12 instalments.

Each member must have to deposit Rs.50 monthly in every centre meeting. Interest rate is 6%.

5% of loan amount should be deposited into this account at the time of loan taken.

After full repayment of the taken loan, such deposited amount will refund with 6% interest.

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11.6. FGD procedure for BSC market study

Time: 10 minutes max.

Step 1: Introduction

A. Introduction of each participants

Name, Address, and Current occupation (business, enterprise etc.). Recording of this information will help the facilitator to identify individual person name and use effectively during the discussion. Introduction of FGD facilitators (list out the name & occupation of each participants so that we can identify the women for interview)

B. Explain the Objectives of FGD

Objective1: The first objective of conducting FGD is to identify few the most potential enterprises in the project VDC and to collect baseline information both qualitative and quantitative about these enterprises i.e.: resources, local markets, socio cultural and environment dynamics and norms. Objective 2: To understand entrepreneurial characteristics and traits in terms of their skill, knowledge & information and competencies to really run a business as such.

Time: Max. 50 minutes

Step 2: Discussion

Guiding Questions

A. What are the skills do the local women have? For example: Vegetable production, Tailoring, Carpet weaving etc.

B. Where are the major local near by market centres in your local areas for these products or services?

C. What are the resources available in your areas for listed enterprises? (For example Physical, Financial, Human )

D. What are the most common businesses or enterprises (existing) in this area? (let the participants discuss and list out the businesses)

E. Have you seen any successful business/enterprise in your locality? If yes, how do you say it is successful?

Recording format

SN Type of

business/enterprise Who run?

Criteria of successful

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Guiding Questions

F. Apart from these, what are the possible enterprises in this area? (let them discuss for 2 minutes)

G. Present the product selection criteria for potential businesses in a flip chart (Market Potential – value addition potential, Availability of Resources, Local Skill, Legal )

H. Present a table to tabulate existing and potential business in a flip chart

Date recording format

Agro-based Local skill based

(non-farm) Service based

Guiding exercise

A. FGD facilitator has to list out the indicators for selecting the potential enterprises with the logical reason behind selecting these enterprises.

B. Present the Product selection Matrix (attractiveness matrix) and explain it. Put the identified enterprises in the matrix.

SUB SECTOR RANKING

Sub Sectors S.N Criteria WeightPS1 PS2 PS3 PS4 PS5 PS6

1 Market Potential – value addition

30 %

ATTRACTIVENESS MATRIX

Potential Nos. of MSME Beneficiaries

Not Attractive

Attractive

Potential to Increase Rural Incom

e

High

Medium

Low

Low Medium High

Sub-sector Identification & Selection

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potential

2 Availability of Resources

20 %

3 Technology - processing

10 %

4 Skill – Adapted, Traditional

15 %

5 Investment sources 20 %

6 Legal 5 %

Weighted Score

Time: 30 minutes

Step 3: Social Cultural , Group dynamics and environmental issues

A. Do local women spend sufficient time for her business? What is her daily routine?

Data recording format

Time Activity Morning Noon Evening

Guiding Questions

B. What is the other’s attitude towards the women who run an enterprise and who do not?

C. What kind of support do the family members provide to the women entrepreneur (i.e. Labour, Marketing, Financial or nothing?)

D. If your enterprise makes pollution in the environment then what is the response from the society? (i.e. using pesticides, wastage from poultry farming, chemicals from Nepali carpet etc.)

E. Do you see any group approach kind of business in your area?

Data recording format

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SN Type of business

Name of group

No. of involved members

Establish date

Product status

M F

Guiding Questions

F. Is there any potentiality to do profitable enterprises in a group? I.e. Organic vegetable, Fair Trade business, Mushroom, Fish farming etc.

G. What are the major constrains do you see in the community to do potential group business?

Time: 10 minutes Step 4: Closing the FGD

Guiding Questions

A. Over all activities during the FGD B. Present the finding of the FGD. (Promising products in

matrix, Social dynamics and daily routine of a women etc) C. Inform the successful entrepreneur for interview and take

time D. Thank the participants E. Provide tea and transportation cost

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11.7. Interview Questionnaire for Entrepreneur (Start-up and Growth)

Name: .......................................... Address: ……………………………..

Education: ……………………………….. Age: ……

Type of Enterprise: Agro-based Services business Non farm business

Others.………………………………………………………………………………………………………

1. How did you start enterprise?

Personal interest Other’s concept Market demand, Low investment

Traditional business

Any other, Please Specify: ..........................................................................

2. Is your enterprise registered?

Yes No

3. Do you know about the registration process?

Yes No

4. If no what is the reason?

Costly Don’t know

Others…………………………………………………………………………………..

5. How much is your investment amount?

Below Rs.20,000 Between Rs.20,000 to Rs.30,000

Between Rs.30,000 to Rs.50,000 Above Rs. 100,000

6. What is your business base on?

Local Resource Skill Commission

Technology Others……………………………………………………………

7. What sorts of Technical and Managerial skills do you have?

Technical:

Production Product processing Product development

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Others Specify ………………………………………………………………………………………………. Managerial:

Planning Assessment Forecasting and planning

Communication Interpersonal and Networking Decision making

Others Specify ……………………………………………………………………………………………….

8. How did you receive such skills?

From traditional skill From institute

Others specify............................................

9. What sorts of new skills do you need think is need to improve your business?

Managerial Accounting Product development Marketing

Legal & Counselling,

Others…………………………………………………………………………………

10. Do you know where to get these skills? Are you willing to pay for this?

Local NGOs/Projects Technical institute Government body

Local person Others …………………………………………………………

Specify the name of organization……………………… Are you willing to pay if provided this?

Yes No

If no, why? ……………………………………………………………………….

11. What is your annual production of the products?

Product Unit Yearly production in kg.

Season/month

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12. What are the raw materials that you use in production? SN. Types of

raw materials

Unit Quantity Rate Total cost

Sources

13. What is your monthly production capacity Area Daily –Monthly production Daily-Monthly Sales

14. How many are employed in your enterprise? No. of skilled

employee

No. of unskilled employee

No. of semiskilled employee

1 to 5 1 to 5 1 to 5 5 to 10 5 to 10 5 to 10 10 to 20 10 to 20 10 to 20 >20 >20 >20

15. What kind of machine, tools and equipment do you use and needed?

Types of machine, tools and equipment

Cost of equipment in Rs. Sources

16. Do you have your owned place or ranted?

Rented Owned Group others……………………………………………..

17. In your opinion does your work place good enough to manage health and

hygiene?

Sufficient work Space

Neat and Clean place

Noise Pollution and bad smell

Clean water

Available Available No Available Not available Not available Yes Not available

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What do you want…………….

If no, what you want……………

If yes, how to control…………………..

If no how to manage…………………….

18. Where do you go when do you need money for your business?

Group Cooperative Family member Banks

19. What type of financial system do you require for working capital?

Credit Logistics

Group

guarantee

Collator based

Others…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

20. Please explain what are the major problems for marketing of your products?

Lack

of quantity

Not

getting reasonable price

Target

market can not identified

Publicity

Rules and

regulation

Low quality

Others………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

21. Who are the potential products market players at local level? (specify the name & address, if possible)

Local Collectors Local Traders Kathmandu based Traders

Others (Wholesaler, Retailer, Individuals and Haat bazaar ) ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

22. What is your mode of transportation when you sell your products?

Public vehicle Local taxi or tractor Porter Self pottering

Others………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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23. Do you have any idea to reduce the marketing/transaction cost?

Marketing through cooperative or group Attracting buyers by mass

production Others…………………………………………………………

24. What is your profit margin of selling product?

Types of products

Cost price in Rs.

Avg. sales price in Rs.

Profit margin in Rs.

Remarks

21. Which types of quality is more demanded in the market? ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 22. Where do you sell products?

Product Local market Kathmandu market Other market 23. Who makes decision about the type of business to engage in your household?

You owned Husband Parents

Father Brother

Others……………………………………………………………………………………………………………………………………… 24. Work division between men and women? Please mark M for Men and W for women

Decision making Financing Production activity

Marketing activity

25. What are the constraint and challenges faced?

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Constraints Challenges

26. As per your interaction with the entrepreneur, please give your own judgment about her Attitude and Traits?

Initiative Persistence information seeking

Problem solving Risk taking Systematic planning

Concern for high quality Innovation and efficiency

Other ………………………………………………………………………………………………………………

11.8. Questionnaire for Cooperative

Name of Cooperative: ………………………… Address: ……………………………… Cooperative type: ………………………….. …. Established date: ………………….

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1. Describe the objective of Cooperative ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 2. How many members are there in cooperative?

Female Male

3. Can you explain about the monthly savings?

Saving type Amount in NRs.

Regular Individual/sweschik Group Others

4. What is the amount of loan size do you provide to your members?

Below Rs. 5,000 Between Rs. 5,000 to Rs.10,000

Between Rs. 10,000 to Rs.20,000 Between Rs. 20,000 to Rs.30,000

Between Rs. 50,000 to Rs.100,000 Above Rs. 100,000

5. Do you think that this cooperative is providing sufficient loan to your members? If

not, how much money do you need to manage the loan?

Yes No Amount needed…………………

6. Do you ask some sorts of business plan before providing loan to your members?

Yes No

7. In which sector is most preferable for the cooperative to provide loan to yours

member?

Income generation/enterprise Household’s purpose

Education and medicine

Others…………………………………………………………………………………

8. What are the other services except loan does your cooperative provides to the

members?

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Skill training Managerial training Account training

Marketing Networking

Others……………………………………………………………………………. 9. What are the major problems?

Problems Explanation

Fund/saving

Management and training

Organization development

Cooperative norms and values (good governance)

Others

10. What kind of technical capabilities you are required to deliver services effectively

to the stakeholders?

Problems Explanation

Fund/Saving

Management and training

Organization development

Cooperative norms and values (good governance)

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Others

11.9. Questionnaire and Checklist for Market Study

1. Market Actors Questionnaire for Market visit to understand the product market information with market actors. These market actors can be retailers, wholesalers and other market actors.

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Name of the Market Actor: ______________________________ Address and telephone No: ____________________ / _____________ Business currently being carried out by Market actor: ______________________________________________________________________________________________________________________________________________ Which of these products/ services out of the 15 selected products/services are interested in selling by Market Actor? ______________________________________________________________________________________________________________________________________________ Product/ Service Name: ……………………………………………… ……………………………………………… ……………………………………………… Product/ Services Specification _______________________________________________________________________ Estimated quantity: ………………………………………………………………………………….. Present supply channel for product/ services …………………………………………… Further specification of product/ Services Price ……………………… Volume ………………………. Quality ………………………….. Competition (within marketers on the same products') ……………………… Supplier …………………………… Market Trend……………………….. Customer…………………………. Future Plans ……………………… What is benefit of product to the customer? …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. Which VDC of BSC target area can be link with this market actor? ______________________________________________________________________ For the product might be constraints from market side/ feedback for the producer from customer through traders.

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SN. Parameters Feedback from Market Actor 1 Quality

2 Quantity 3 Availability

4 Price 5 Packaging

Any other products/services that can be linked through market actors: ______________________________________________________________________

2. Market Promoters This market promoter will be identified out of the market actors. The market promoter is thought to have long term relation with BSC selected entrepreneurs Name of Market Promoter………………………………………………………………………………………………………………… Address of Market Promoter…………………………………………………………………………………………………………….. Interest of market promoter for Product/ Services

Product/ Services Market promoter Interest in terms of product/ services ( e.g. Children cloth

for tailoring, designer candle etc.)

Product specification required by the promoter for marketing Product design Product Price Delivery mechanism Embedded services Approach/ quality requirements for developing partnership with VDC entrepreneur

Requirements Approach Activities to be carried out

Supply

Marketing and market information

Group

Technology Transfer Technical information

Value addition possibilities of the product/ services Product/ services Value addition Initial cost for Market segment

Page: 133 / 142

possibilities value addition for value added products

Approach or types of contract between Market promoter and BSC supported entrepreneurs Buying – Selling Contract agreement Embedded services Constraints of market promoter for partnership with VDC entrepreneurs ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. Delivery Mechanism for the products/ services from entrepreneur and market promoter………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Initial activities to be carried out for partnership with Market promoter ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 3. Consumer The checklist for consumer will be very specific to the product that we are discussing with few of the attributes to be known from consumer. The research team is not going to do detail consumer survey. At least one consumer in each product/ services will be discussed for getting their feedback.

Consumer Attributes Products/ Services Price of

product and its effect

Quality of product

Usage of product/ Time/ season/ Way

Consumer feedback for improvement of product

11.10. Field visit schedule of the assignment

Date Place No. of

Participated person

Activities

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April 20, 2009 Thecho VDC 32 FGD/Interview

April 22, 2009 Kakani VDC 17 FGD

April 23-24, 2009

Okharpauwa VDC 25 FGD

April 26, 2009 Saibu VDC 12 FGD

April 27, 2009 Chapali VDC 15 FGD

April 28, 2009 Kirtipur, Panga 14 FGD

April 29, 2009 Sirutar VDC 17 FGD

Field Visit Schedule for market survey:

Date Place No. of Participated person Activities

Wednesday June 10, 2009

Kakani Discussion with Nayabihani cooperative, Rainbow Trout Restaurant, JAITI Farm, Mushroom entrepreneurs, Floriculture farmers

Meeting with local market actors

May- June 2009 Market Actor Visit List of market actor mentioned Discussing market actor questionnaire

Jun-09 Market Promoter Visit list of market promoter mentioned

Discussing market promoter questionnaire

Jun-09 Customer discussion One customer for each products Discussing customer questionnaire

11.11. List of people met

During FGD and interviews with the beneficiaries Date Place Name of person Designation Name of Institution Contact

number

April, 20, 2009

Thecho VDC Rabi Maharjan and Sarita Lama

Mushroom and Carpet Entrepreneur

April 22, 2009

Kakani VDC Kanti Lama Trout fish Entrepreneur

Kakani women saving credit cooperative

9745033811

April 22, 2009

Kakani VDC

Dolma Shakya Secretary Kakani women saving credit cooperative

April 23, 2009

Okharpauwa VDC

Chinimaya Tamang Chairperson Birkeshowri Women Saving and Credit Group

9841089488

April 23, 2009

Okharpauwa VDC

Rajendra Titung Entrepreneur Shree Navabihani Krisak Bahu uddesiya Cooperative

April 23, 2009

Okharpauwa VDC

Rinjilahamu Sherpa and Aangnima Sherpa

Entrepreneur ( Tata Rose

-

April 23, 2009

Okharpauwa VDC

Kanchhaman Tamang

Chairperson/Entrepreneur - Strawberry

Shree Navabihani Krisak Bahu uddesiya Cooperative

9741162711

April 26, 2009

Saibu VDC Bimala Basnet Vegetable Entrepreneur

- 5592197

April 26, 2009

Saibu VDC Sngita Khattri Poultry Entrepreneur - 5592209, 9841881894

April 27, Chapali VDC Ramkala Khadka Entrepreneur - 4377011

Page: 135 / 142

2009

April 29, 2009

Sirutar VDC Bimala Basnet Entrepreneur Somalingeshore Women Saving and Credit Cooperative

9841393133

April 29, 2009

Sirutar VDC Meera Rajthala Tea shop Entrepreneur

Member (Somalingeshore Women Saving and Credit Cooperative )

9841813161

May 10, 2009

Kirtipur, Panga Prava Dangol and Roshni Maharjan

Staff and Vice chairperson

Panga Women Saving and Credit Cooperative

9841330434, 9841564173

May 11, 2009

Sirutar VDC Prakash Shrestha Entrepreneur -

9803315451

May 11, 2009

Sirutar VDC Maina Shrestha Green Vegetables Entrepreneur

- 5639664

May 12, 2009

Chapali VDC Laxmi Shrestha Candle Entrepreneur

4375584

May 26, 2009

Kirtipur, Panga Sarswati Maharjan Retail shop Entrepreneur

Member -

May 31, 2009

Saibu VDC Reshma Thapa, Shanta Thapa and Sanubaini Thapa

Soap making Entrepreneur

Basaladevi Group -

May 19, 2009

Directorate of industrial entomology development, Hariharbhawan, Lalitpur

Shanker PD. Neupane

Industrial entomologist

Directorate of industrial entomology development, Hariharbhawan, Lalitpur

5524225, 5010090

During market assessment Date Place Name of person Designation Name of Institution Contact

number Mode of discussion

June 08, Monday

Thapathali Om Thapaliya Director and project leader

Home net/ SABAH Visit

June 07, Sunday

New Road Upendra Bahadur Shrestha

Chairman Oriental Enterprise 9851031690, 4263872

Visit

June 09, Tuesday

Bhakundole Sameer Newa Chairman Organic Village Telephone

June 11, Thursday

Harihar Bhawan

Dr. K.P Paudel Scientist Directorate of industrial entomology development office

5524225 Visit

June 5, Friday

Kantipath Rajendra Manager Standard Nursery Group

4223137, 4372522, www.standardnursery.com.np

Visit

June 3, Wednesday

Bhaktapur Bishnu Proprietor Lotus Land Organic Farm

6610082, 9841257169

Visit

June 4, Thursday

Dillibazar Sameer Man Shrestha

Executive Director

Agro Forestry Promotion Centre ( AFPC)

4415913, 9851023399

Telephone

June 4, Thursday

Bhaisepati Narayan P Gyawali Manager Love Green Nepal/ Prakrit

5591377 Visit

June 2, Monday

Bishal Nagar Pramila Rai Managing Director

Ninam Ridum Bio Handicraft Centre

2081705, 9851098542

Visit

June 2, Monday

Kupondole Uttara Malakar Manager Mahaguthi 5532981 Visit

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June 10, Wednesday

Okharpauwa Kancha Man Tamang, Rajendra Titung

President Nayajivan Sahakari, Okharpauwa

Visit

June 1, Sunday

Kalimati Ram Krishna Shrestha

Proprietor Kalimati Wholesale Market

Kalimati Visit

June 12, Friday

Thimi Tanka Raj Parajuli Manager Grameen Agro Enterprise Pvt. Ltd

9841413970 Visit

June 12, Friday

Kalimati Kamal Subba , Yadav Karmacharya

Manager Agro Business Centre for Research and Development

9841492330, 9851031617

Telephone

June 1, Sunday

Dillibazar Indira Sapkota Director Nepal Grihani Udyog

4421031 Visit

June 09, Tuesday

Babarmahal Om Thapaliya Executive Director

Home net 4222934 www.homenetnepal.org

Visit

June 1, Sunday

Balaju Daman Lama Proprietor Fall and Trout Village Fish Farm with Hotel and Restaurant

016222566, 9741148851

Telephone

June 10, Wednesday

Tripureshwor Lok Nath Gaire Proprietor United Flora 9841402816 Visit

June 10, Wednesday

Danchi Dr. K.P Paudel Proprietor Nepalese Farming Institute

4451443 Visit

June 15, Monday

Boudha Sunil Lama Proprietor Boudha Carpet 9841289675 Visit

June 09, Tuesday

Balaju Hari Krishna Sahuji

Proprietor valley Feed 4352715, 9851033692

Visit

may 21, Thursday

Kathmandu Urmila Tamrakar Proprietor Peeganani Handicrafts

4261108 Telephone

May 22, Friday

Kuleshwore Radha Shakya Proprietor H.B Crafts 4274599 Visit

May 22, Friday

Kathmandu Min Narayan Dangol

CEO Rahisha Crafts 4361518 Telephone

May 24, Sunday

Kathmandu Mahalaxmi Shrestha

Managing Director

Beekeeping shop 9851092780 Telephone

May 24, Sunday

Kupondole Darshana Shrestha

Entrepreneur WEAN 9851005853 Telephone

May 25, Monday

Kathmandu Manila B Sharma Proprietor Designers Handicrafts

9851015822 Telephone

May 25, Monday

Samakhusi Lata Kaini Director Marigold Dyes Natural (herbal)

4351542 Telephone

May 27, Wednesday

Kathmandu Neera Vaidya Proprietor Neera Handicrafts 9841313439 Telephone

May 27, Wednesday

Kathmandu Raisha Dangol Proprietor Rahisha Crafts 4361518 Telephone

May 28, Thursday

Kathmandu Yasoda Vaidya Excom member

FNCCI 4244231 Telephone

May 28, Thursday

Kathmandu Hari Adhikari Member Red Group 5532098 Telephone

May 28, Thursday

Kathmandu Kalpana Shakya Proprietor Buddhist Treasure International

5520344 Telephone

May 29, Friday

Balaju Nabaraj Budathoki Managing Director

N.B Hemp House 9851004614, 4365330

Visit

11.12. Promoters profile S.N. Name of the Promoter Address Contact person Interest on Product/

Services Other product line of market

promoters

Page: 137 / 142

1 Home net Babarmahal Tel: 4222934 www.homenetnepal.org

Om Thapaliya M: 9851013358

Allo Nettle, Dye Handicrafts, works with Home based workers Network, NGO modality of working

2 Standard Nursery Group

Kantipath, Tel: 4223137, 4372522, www.standardnursery.com.np

Rajendra Tata-Rose Floriculture research, input and seedlings supply

3 Lotus Land Organic Farm

Bhaktapur, Tel: 6610082

Bishnu M: 9841257169

Organic Vegetable (KIWI, Ground Apple, Sweet Potato, Chest Nut, Chukandar)

Organic vegetable producer and collector for marketing

4 Agro Forestry Promotion Centre ( AFPC)

Dillibazar Tel: 4415913

Sameer Man Shrestha M: 9851023399

Kurilo, Tata rose, Strawberry

Agriculture and forestry based enterprises with own farming in Kakani lease land in Jhapa9

5 Love Green Nepal/ PRAKRIT

Bhaisepati, Tel: 5591377

Narayan P Gyawali Kiwi Sales outlet for own farm and nearby farmers, tissue culture lab

6 Ninam Ridum Bio Handicraft Centre

Bishal Nagar, Tel: 2081705

Pramila Rai M: 9851098542

Allo nettle Nettle fibre products and has network with Sankhuwasabha 10groups

7 Mahaguthi Kupondole Tel: 5532981

Uttara Malakar Incense stick and Candle

Fair trade organization dealing with handicrafts products

8 Nayajivan Sahakari, Okharpauwa

Kancha Man Tamang, M: 9741162711 Rajendra Titung

Strawberry, Organic Vegetable

Local cooperative doing business in marketing of strawberry

9 Oriental Enterprises New Road, Tel 4263872

Upendra Shrestha M: 98510 31690

Strawberry, Lapsi powder

Export and import business in spices, incense stick and food items

10 Kalimati Wholesale Market

Kalimati Ram Krishna Sahu M: 98510 37252

Kurilo, Mushroom Vegetable and fruits for Kathmandu valley

11 Grameen Agro Enterprise Pvt. Ltd

Thimi Tanka Raj Parajuli M: 9841413970

Mushroom, planning for floriculture

Private enterprise with 1000 farmer members working presently in Mushroom

12 Agro Business Centre for Research and Development

Kalimati Kamal Subba M: 9841492330, Yadav Karmacharya M: 9851031617

Trout, Strawberry and Roses

Tissue culture lab, input for floriculture and strawberry

13 Nepal Grihani Udyog Dillibazar Tel: 4421031

Indira Sapkota

Children Clothes, Lapsi Pickles

Women focused enterprise working in pickles, dresses and supplies to department stores

15 Valley Feed Industries Balaju Tel: 4352715

Hari Krishna Sahuji M: 9851033692

Poultry Largest poultry and feed suppliers in Kathmandu

16 Boudha Carpet Boudha Sunil Lama M: 9841289675 , Sharmil , Thecho

Carpet Carpet agent for export house and Thamel 11based traders

11.13. List of organisations visited for collecting secondary source of information

9 Eastern Terai district of Nepal rich in agriculture farming 10 Easter Hill district of Nepal rich in Nettle fiber production and processing 11 Major tourist destination in Kathmandu

Page: 138 / 142

S.N. Organisation Address Telephone Remarks 1. District Agriculture

Development Office Hariharbhawan, 5521323

2. Fish Development Centre Balaju 4385646 3. Association for Craft

Producers Rabi Bhawan 4275108,

4270721

4. Handicrafts Association of Nepal

Thapathali, 4244231, 4222940

5. Directorate of Industrial Entomology Development

Hariharbhawan, 5524225, 5010090

Shankar Prasad Neupane

6. Kalimati Fruits and Vegetable Market Development Board

Kalimati, 4271086

11.14. Fair Trade

Fair Trade is trading partnership based on dialogue transparency and respect that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers. (IFAT Definition 2002) Fair Trade Standards

a. Creating opportunities for economically disadvantage producers supporting poorest producers

b. Transparency and accountability; dealing fairly and openly with trading partners c. Capacity building; developing the skill of producers and creating opportunities for

trading their products d. Promoting Fair Trade; telling as many people as possible about Fair Trade and

informing customers where products have come from e. Payment of fair price; ensuring that producers receive a fair price for their

products f. Gender equity; providing equal pay and opportunities for women and men g. Working conditions; ensuring that producers are working in a healthy and safe

place h. Child labour; ensuring that the UN convention on the Rights of Child is respected i. The Environment; ensuring that materials used in production and packaging do

not damage the environment j. Trade Relations; maintaining long-term relationship with concern for the social,

economic and environmental well-being of marginalized small producers with pre-harvest or pre-production advance payment to producers wherever possible.

Criteria for Membership Fair Trade Group Nepal welcomes application from legally registered organizations who share their commitments to the ideals of fair trade. To be eligible, the applicant must fulfil the following criteria:

1. Applicants must adhere to the Fair Trade Code of Conduct set by FTG Nepal

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2. Applicants must have clearly indicated mission to support the producers/artisan’s sustainable development process by providing regular income and employment to them under fair conditions.

3. Applicant must be providing capacity development opportunities to the producers as well as implementing education and social welfare programme for their benefit.

4. Applicant for membership must have completed at least three year’s of operation after having legally registered with concerned authorities of Government of Nepal.

5. Applicant must be working with economically, socially and physically challenged producers. Minimum 10 producers must be getting employment opportunities from the organization.

6. Applicant must have at least 3 people employed or active in organizational activities.

7. To qualify for membership, applicant organization must be engaged in manufacturing and marketing of handicrafts, agro and non timber forest products. The total sales turnover should account minimum 25% of total regular income of the applicant.

8. To qualify for membership applicant’s organization must be, owned and managed solely by Nepalese Nationals.

9. To qualify for membership, applicant organization can be either an NGO or enterprise based on craft/agro/non timber forest product, fulfilling all the membership criteria.

Producer's guideline FTG has formulated following guidelines to effectively implement fair trade practices by member organizations and their producers.

• Work with socially, economically and physically challenged producers • Provide Fair Wage as appropriate to local condition • Encourage to maintain safe and hygienic working conditions • Provide advance on raw materials and working capitals. Make prompt payments

after receiving final products • Develop capacity of the producers to enhance their skill, technical know-how and

managerial and risk taking abilities • Raise awareness among the grass root producers about fair trade practices. • Encourage and support producers/groups to adopt environment friendly and

sustainable production practices • To discourage child labour • To ensure fair dealing with the producers • To educate the producers on the importance of maintaining confidentiality of the

business secrecy protected design and patterns. • Have effective communication mechanism to achieve operational transparency

between member organizations and producers

Page: 140 / 142

Application procedure

Documents to be submitted 1. Covering Letter 2. Audited Financial Report of Last 3 years 3. Progress Report of last 3 years 4. Organizational Profile or Brochure 5. Constitution or Memorandum of Articles (Prabandaha Patra)

Procedure for granting membership to the applicant subjected to

1. Submission of documents by the applicant A complete application form and necessary document as per the membership application procedure.

2. Sharing/ seeking references/ information about the applicant from the existing members. The negative reference /remarks, if any about the applicant to be submitted in writing to FTG board along with evidences by the member.

3. Conduction of entry audit by external certified auditor through field visit/ inspection. The expenses for which to be borne by the applicants

4. Submission of audit report to the board for decision making 5. Granting provisional membership for 2 years initially 6. Providing full fledge membership after completion of provisional period of two

years; based on the submission of Self Assessment Report and Social Audit Report (if necessary)

7. Existing members to do Mutual/Self review against Fair Trade practices/Standards biennially

Table 17: List of fair trade Organisations

Organisation Name Contract Person Address Products

1.Association for Craft Producers

Ms. Meera Bhattarai Executive Director

Rabi Bhawan Kathmandu Tel:01-4272676

Cotton textiles, Felt, Ceramic, Copper and knitwear

2.Janakpur Women’s Development Centre

Mr. Degendra Raj Pokharel Manager

Janakpur Kuwal Village-12 Tel:041-521080

Paintings, mirrors (paper made and items), sewing, screen-print, ceramic and are producing Mithila paintings, paper made and mirrors cotton and woollen textile household products, ceramics.

3.Kumbeshwar Technical School

Mr. Kiran B. Khadgi Executive Director

Kathmandu Kumbeshwar Tel:01-5537484/5539216

Woollen, silk, Pashmina and cotton hand knitwear, hand woven woollen carpets, woollen furniture,

4. Mahaguthi, Craft with a conscience

Mr. Sunil Chitrakar Executive Director

Kathmandu Pulchowk Lalitpur Tl:01-5533197

handloom textiles and garments, silver jewellery, ceramics and clay crafts, handmade paper, musical instruments specially singing bowl,

Page: 141 / 142

metal works, bamboo crafts,

5.Manushi Ms. Padmasana Shakya Executive Chairperson

43-Sarathi Marga, Gyaneshwor Kathmandu Tel: 01-4444762

Tie/Die products, cotton textile/household, cotton craft and knitted, Allo/hemp product, lokta paper, silver ornaments, silver beads products, silk products, recycled silk, felt, banana fibres

6.Sana Hastakala Mr. Chandra P. Kachhipati Executive Director

Kupondole (Opposite Hotel Himalayan) Tel; 01-5522628 /5555837

Allo, loom cotton, silk, wool and paper, silver jewellery, felt, filigree, wood carving, metal craft, recycled silk, ceramics.

7. Women’s Skill Development Project

Ms. Ramkali Khadka Executive Director

Srijana Chock, Pokhara, Tel; 061-520393

Provides handicraft skill training, Dying, weaving, material cutting, sewing, business management and other skill related to handicraft production,

8. New SADLE Mr. Chitra B. K.C. Executive Director

Baikunthapuri Nagari, Kapan-6 Kathmandu Tel: 01- 4820680/ 4821259

Dhaka and heavy cotton bed linen, table linen, bags and accessories, batik and Thanka paintings, singing bowls, buttons, and paper products,

9. Nepal Leprosy Trust Mr. Kamala Shrestha Executive Director

Tutepani-14, Satdobato, Lalitpur Tel: 01-5521622/ 5523322

High quality leather and fabric bags, purses, wallets

10. Women Development Service Centre

Mrs. Shanta Koirala President

Janakpur Municipality-4, Uttimpur Dhanusha Tel: 041-521668

Paper paintings, mirrors, tea coaster, book marks, greeting cards, boxes, Mithila cloth paintings, photo albums, Mithila art tray, CD holder, T-shirts, patch work products, embroidery worked bags

11. Children-Nepal Mr. Ram Chandra Paudel Executive Director

Pokhara-7,Masbar,Nepal Tel: 061- 532054/ 535138

Handicraft product like aprons, bags, small purse, Traditional Thaily, Christmas decorations, hair decorations, puppets, hand puppets, stuffed toys, t- shirts and many more accessories,

12. Nepal Girls Care Centre

Ms. Devi Lama Executive Director

Kathmandu Nepal Tel: 01- 4109026(Head office), 01-4495211(product centre)

Greeting cards, coasters, pen holders, calendars, necklaces, bracelets, Christmas ornaments, key rings, hair clips, towel/bathroom tissue holders, calendars festival accessories,

13.Bhaktpur Craft Printers

Mr. Niranjan Nepal General Manager

Byasi, Bhaktapur Industrial District, Bhaktapur Tel: 01-6610795/

Greeting cards, stationary sets, notebooks, wrapping papers, bags and envelopes

Page: 142 / 142

611071

14. Get paper industries

Mr. Millan Dev Bhattarai, Director

Basbari, Kathmandu Tel: 4370819

Paper bags, paper boxes, note book, greeting cards, photo frame and albums

15.Folk Nepal Mr. Dhan Kumar Rai, Chairman

Kathmandu, Tel: 4426009

Nepali handmade papers goods, wooden crafts, knitting wears, garments, interior, metal crafts and wooden crafts

16. Hatale udhyog pvt ltd

Mr. Bishnu Prasad Shrestha

Kathmandu, Tell:4274012

Nepali handmade paper products, felt accessories

11.15. Additional reference materials produced during the study

Photographs taken is separately provided Product selection ranking matrix in the Excel sheets Interviews data entry in the Excel sheet (both individuals and cooperatives) FGD findings in the matrix format (Excel file format)